Entrepreneurs hold a significant fraction of the total wealth in the economy; they are approximately 8% of the population but hold 39% of total net worth. In this paper, we construct and solve numerically a life cycle optimization model with intergenerational transmission of bequests to study...

Empirical studies have shown that, for many countries, the distribution of wealth is much more concentrated than the one of labor earnings and that households with higher levels of lifetime income have higher lifetime saving rates. Previous models have had difficulty in generating these...