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M. Sánchez-Romero, S. Wrzaczek, A. Fürnkranz-Prskawetz, G. Feichtinger:
"Does demography change wealth inequality?";
Vortrag: 14th Viennese Conference "Optimal Control and Dynamic Games", Wien, TU Wien; 03.07.2018 - 06.07.2018.

In this article, we investigate the effect of demography on wealth inequality. We
propose an economic growth model with overlapping generations in which individuals
are altruistic towards their children and differ with respect to the age of their parent.
We denote the age gap between the parent and their child as generational gap. The
introduction of the generational gap allows us to analyze wealth inequality not only across
cohorts but also within cohorts. Our model predicts that a decline in fertility raises wealth
inequality within cohorts and, simultaneously, it reduces inequality at the population level
(across cohorts). In contrast, increases in life expectancy result in a non-monotonic effect
on wealth inequality by age and across cohorts.