Jove
Visualize
Contact Us
JoVE
x logofacebook logolinkedin logoyoutube logo
ABOUT JoVE
OverviewLeadershipBlogJoVE Help Center
AUTHORS
Publishing ProcessEditorial BoardScope & PoliciesPeer ReviewFAQSubmit
LIBRARIANS
TestimonialsSubscriptionsAccessResourcesLibrary Advisory BoardFAQ
RESEARCH
JoVE JournalMethods CollectionsJoVE Encyclopedia of ExperimentsArchive
EDUCATION
JoVE CoreJoVE BusinessJoVE Science EducationJoVE Lab ManualFaculty Resource CenterFaculty Site
Terms & Conditions of Use
Privacy Policy
Policies

Related Experiment Videos

Changes in cohort wealth over a generation.

M H David1, P L Menchik

  • 1Department of Economics, University of Wisconsin 53706.

Demography
|August 1, 1988
PubMed
Summary
This summary is machine-generated.

Related Concept Videos

You might also read

Related Articles

Articles linked to this work by shared authors, journal, and citation graph.

Sort by
Same author

A correlation between oxygen requirements and the products of sterol synthesis in strains of Saccharomyces cerevisiae.

Journal of general microbiologyยท1973
See all related articles

Estimating wealth is challenging due to varying mortality risks and truncated estate data. This study overcomes these issues, revealing survivors hold more wealth, correcting downward bias in wealth-age estimates.

Area of Science:

  • Economics
  • Demography
  • Sociology

Background:

  • Estimating cohort wealth is empirically challenging due to differential mortality risks and truncated estate data.
  • Existing methods like the estate multiplier method may introduce downward bias in wealth-age relationship estimates.
  • Understanding wealth accumulation and distribution across the lifespan is crucial for economic and social policy.

Purpose of the Study:

  • To address the empirical challenges in computing expected wealth for cohorts.
  • To develop and apply a novel methodology for estimating cohort wealth, accounting for mortality and survival.
  • To provide more accurate estimates of wealth-age relationships and investigate dissaving patterns.

Main Methods:

  • Utilized hazard rate models to estimate differential occupational mortality risks from tax records.

Related Experiment Videos

  • Simulated net estate values for individuals within birth cohorts who survived observation periods.
  • Employed longitudinal data to analyze wealth accumulation and dissaving behaviors.

    • Main Results:

    • Survivors consistently demonstrated greater wealth holdings than deceased individuals across birth years (1890-1924).
    • The estate multiplier method, without adjustments, exhibits a significant downward bias in wealth-age estimations.
    • Longitudinal data analysis indicates no substantial dissaving occurs after age 65.

    Conclusions:

    • The developed methodology effectively resolves issues of varying mortality and data truncation in wealth estimation.
    • Accurate cohort wealth estimation requires accounting for survivor bias, which significantly impacts wealth-age profiles.
    • Findings suggest wealth is generally maintained or potentially grows in later life, challenging assumptions of widespread dissaving.