Why Has the Number of Billionaires Increased So Much?

EI seminar
A women wearing fashionable sunglasses whilst holding up multiple high end shopping bags

We study the fourfold increase in the number of billionaires since 2001, and its regional variation. We develop a model where wealth is proportional to the length of a Self-Avoiding Walk on a random network, which rationalizes the Gompertz distribution of log wealth in our data.

Speaker
Coen N. Teulings and Simon J. Toussaint
Date
Thursday 25 Apr 2024, 12:00 - 13:00
Type
Seminar
Room
ET-14
Building
E Building
Location
Campus Woudestein
Add to calendar

The model predicts the elasticity of top inequality to depend solely on population size and the lower thresholds for wealth to depend solely and one-for-one on regional GDP per capita and a global asset-market factor. All predictions hold in our data. Time fixed effects do not significantly improve the model fit, but regional effects do. Counterfactual exercises closely predict observed mean (log) wealth and billionaire numbers. The increases in billionaire numbers and mean (log) wealth are almost entirely driven by increases in GDP per capita. We interpret our results in the context of Melitz (2003)-style models where market size shapes firm (and hence wealth) concentration.

Registration

You can sign up for this seminar by sending an email to eb-secr@ese.eur.nl. The lunch will be provided (vegetarian option included).

Organiser

See also

At the Edge of Donsker's Theorem: Asymptotics of Multiscale Scan Statistics

Fabian Mies (TU Delft)
The Erasmus University, Rotterdam Campus

Overparametrisation and the Bias-variance Dilemma

Johannes Schmidt-Hieber (University of Twente)
Person writing on a whiteboard

Inference in Time-Varying SVARs Identified with Sign Restrictions

Jonas Arias (Federal Reserve Bank of Philadelphia)
cropped view of man getting US dollars out of a wallet

A Smaller Cycle Formulation for Periodic Event Scheduling Problems

Rolf van Lieshout (Eindhoven University of Technology)
Image - Swiss Train

Systemic Risk: CoVaR, Comovement, and Portfolio Selection

Liang Peng (Georgia State University)
The Erasmus University, Rotterdam Campus

Research Workshop on Inference and Optimality in Econometrics

Keynote Speaker: Isaiah Andrews
Image - Workshop Inference and Optimality in Econometrics

Lecture Asymptotic Optimality in Econometrics

Isaiah Andrews (Massachusetts Institute of Technology)
Image - Isaiah-Andrews

Bounds of the Market Risk Premium

Jens Jackwerth (University of Konstanz)
A person jumping off from gray concrete building

FinEML Conference 2025

Financial Econometrics Meets Machine Learning
Google Deep mind
More information

Do you want to know more about the event? Contact the secretariat Econometrics at eb-secr@ese.eur.nl.

Compare @count study programme

  • @title

    • Duration: @duration
Compare study programmes