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An important take-away here is that larger personal economic buffers (the percentage of their wealth each person does not need to transact regularly) resulted i
by snowwrestler 7y ago
An important take-away here is that larger personal economic buffers (the percentage of their wealth each person does not need to transact regularly) resulted in a lower final Gini coefficient. This matches our real-world experience that growing savings is the path to financial stability, and real-world data that forced saving functions (home ownership, social security) improve average financial stability.
I would be interested to see death included in the model, as that is an important and common way that pools of wealth get redistributed over the long term in an economy.
- sjg007 7y agoIt can be averaged into the redistribution function he already used.
- maroonblazer 7y ago>I would be interested to see death included in the model, as that is an important and common way that pools of wealth get redistributed over the long term in an economy. Only in the narrowest sense of 'redistributed' though, right? I.e. upon death wealth typically transfers to kin, modulo whatever estate taxes apply for a given country.
- snowwrestler 7y agoYeah, I mean just the basic inheritance tree—if there are 2 kids then each gets half, and if each of them has kids then it gets further subdivided, plus some heirs will spend down or lose money and have less to pass down...
- xyzzyz 7y agoEach gets half, but typically their spouse also gets their half from their parents.