ABSTRACT
Flow variables such as wages, income, and consumption have played the key roles in the analyses of the preceding chapters. In this chapter, a stock variable-wealthtakes center stage. Wealth (its level and distribution) is an important factor influencing economic well-being. Income from wealth-interest, dividends, and capital gainsmakes up a significant chunk of the national income, approximately 23 percent,1 and the mere possession of wealth is a source of security and a creator of opportunity. This chapter reviews models of the accumulation of wealth with special emphasis placed on the always interesting topic of inheritance.
