Tesi etd-05222024-205904
Link copiato negli appunti
Tipo di tesi
Corso Ordinario Secondo Livello
Autore
DALLE LUCHE, MATTEO
URN
etd-05222024-205904
Titolo
Heterogeneous returns on wealth in the Italian economy: the distributional consequences of differential households’ savings
and investment choices
Struttura
Classe Scienze Sociali
Corso di studi
SCIENZE ECONOMICHE E MANAGERIALI - SCIENZE ECONOMICHE E MANAGERIALI
Commissione
Tutor Prof. FAGIOLO, GIORGIO
Relatore Prof. ROVENTINI, ANDREA
Presidente Prof. IRALDO, FABIO
Membro Prof.ssa CHIAROMONTE, FRANCESCA
Membro Prof.ssa ANNUNZIATA, ELEONORA
Membro Prof. BELLINI, NICOLA
Relatore Prof. ROVENTINI, ANDREA
Presidente Prof. IRALDO, FABIO
Membro Prof.ssa CHIAROMONTE, FRANCESCA
Membro Prof.ssa ANNUNZIATA, ELEONORA
Membro Prof. BELLINI, NICOLA
Parole chiave
- capital income inequality
- wealth distribution
- household finance
- financial crises
Data inizio appello
14/06/2024;
Disponibilità
completa
Riassunto analitico
The distribution of rates of return on personal wealth and how they contribute in shaping capital income
inequality is an issue of recent investigation in the economic literature. This work constitutes an attempt
to conservatively estimate rates of return on wealth within the households sector, to be used to update
the current evidence over the distribution of capital income in Italy on augmented survey data spanning
between 2004 and 2015.
Pivoting on the capital stocks capitalization data provided by Jord` a et al. (2019) Macrohistory lab dataset,
we infer that the relation between wealth and returns on wealth in Italy is monotone increasing and
convex in most years, namely, those that were not characterized by the significantly negative financial
turbulences the country has gone through. If one excludes these periods of extremely severe downturns
in financial markets, the top groups in the Italian wealth distribution prove to earn excess returns on
f
inancial assets that that range from 40% to 60% greater on average than those earned by the bottom
90% of the wealth distribution. This effect is to be imputed to two main facts. First, interest rates on
net wealth are predominantly negative within the bottom two deciles in the Italian economy, due to debt
exposure within poorest groups naturally creating divergence between the top and the bottom half of
the distribution. Second, financial portfolios at the bottom ensure lower yields on financial wealth, thus
signaling worse investment opportunities. Returns at the top of the distribution are consistently more
volatile, though their expected performance over the 12 years considered is always higher in periods
of ordinary financial markets circumstances. An important role in the Italian economy is played by
returns on housing wealth: the reliance of great chunks of the middle of the wealth distribution on real
activities, making up around 60% of wealth of mid groups, makes their returns on wealth more stable
and considerably less affected by financial crises. Nonetheless, this is part of the reason as to why the
underdeveloment of Italian financial markets generate a structural increasing relation between wealth
and returns at the macroeconomic level, as riskier financial assets do secure higher returns on average,
which benefit the rich for the most part.
Thanks to the wide coverage of Macrohistory data, this methodology is replicable for other countries to
gather insights over household sector capital income distribution.
inequality is an issue of recent investigation in the economic literature. This work constitutes an attempt
to conservatively estimate rates of return on wealth within the households sector, to be used to update
the current evidence over the distribution of capital income in Italy on augmented survey data spanning
between 2004 and 2015.
Pivoting on the capital stocks capitalization data provided by Jord` a et al. (2019) Macrohistory lab dataset,
we infer that the relation between wealth and returns on wealth in Italy is monotone increasing and
convex in most years, namely, those that were not characterized by the significantly negative financial
turbulences the country has gone through. If one excludes these periods of extremely severe downturns
in financial markets, the top groups in the Italian wealth distribution prove to earn excess returns on
f
inancial assets that that range from 40% to 60% greater on average than those earned by the bottom
90% of the wealth distribution. This effect is to be imputed to two main facts. First, interest rates on
net wealth are predominantly negative within the bottom two deciles in the Italian economy, due to debt
exposure within poorest groups naturally creating divergence between the top and the bottom half of
the distribution. Second, financial portfolios at the bottom ensure lower yields on financial wealth, thus
signaling worse investment opportunities. Returns at the top of the distribution are consistently more
volatile, though their expected performance over the 12 years considered is always higher in periods
of ordinary financial markets circumstances. An important role in the Italian economy is played by
returns on housing wealth: the reliance of great chunks of the middle of the wealth distribution on real
activities, making up around 60% of wealth of mid groups, makes their returns on wealth more stable
and considerably less affected by financial crises. Nonetheless, this is part of the reason as to why the
underdeveloment of Italian financial markets generate a structural increasing relation between wealth
and returns at the macroeconomic level, as riskier financial assets do secure higher returns on average,
which benefit the rich for the most part.
Thanks to the wide coverage of Macrohistory data, this methodology is replicable for other countries to
gather insights over household sector capital income distribution.
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