Alain Venditti


Alain Venditti

On the long-run fluctuations of inheritance in two-sector OLG models
Co-écrit avec
Florian Pelgrin

IBD Salle 21

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Jeudi 3 juin 2021| 11:00 - 12:00

Gaëtan Fournier : gaetan.fournier[at]
Evgeny Tsodikovich : evgeny.tsodikovich[at]


This paper provides a long-run cycle perspective to explain the behavior of the annual flow of inheritance as identified by Piketty (2011) for France and Atkinson (2018) for the UK. Using a two-sector Barro-type (1974) OLG model with non-separable preferences and bequests, we show that endogenous fluctuations are likely to occur through period-2 cycles or Hopf bifurcations. Two key mechanisms, which can generate independently or together quasi-periodic cycles, can be identified as long as agents are sufficiently impatient. The first mechanism relies on the elasticity of intertemporal substitution or equivalently the sign of the cross-derivative of the utility function whereas the second rests on sectoral technologies through the sign of the capital intensity difference across two sectors. Furthermore, building on the quasi-palindromic nature of the degree-4 characteristic equation, we derive some meaningful sufficient conditions associated to the occurrence of complex roots in a two-sector OLG model. Finally, we show that our theoretical results are consistent with some empirical evidence for medium- and long-run swings in the inheritance flows as a fraction of national income in France over the period 1896-2008.

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