Dynastic accumulation of wealth
Résumé
Why do some dynasties maintain the fortune of their founders while others completely squander it in
few generations? To address this question, we propose a simple deterministic model combining bequests
motives and labor supply. We show that the interaction of the two key parameters in the model, the
‘‘hunger for accumulation’’ and the ‘‘willingness to exert effort’’, can produce a surprisingly rich set of
long-run process of wealth accumulation within a family lineage.