This article provides a thorough examination of concepts in wealth inequality. The research is very objective and well documented. The article, being 14 years old, is quite old and some information may be outdated, as researchers have done more research on the particular subject.
Since wealth inequality is a broad topic,
the article has really helped me in understanding the concepts of wealth inequality, in addition to narrowing it down. This is because there is a direct linkage that characterizes income inequality and wealth inequality.
Cagetti and Nardi describe the wealth distribution and concentration in the United States. Moreover, the authors provided the percentages of the economy held by the rich and poor. They showed the different economic models that represent factors affecting wealth inequality.
The paper is very reliable considering that the Chicago Federal Reserve Bank provided it. Cagetti and Nardi are very objective when it comes to the research done. The authors documented the facts very well.
The article describes the racial differences in wealth ownership. The authors use data from surveys to model asset ownership. Its purpose is to find which race is more likely to purchase high-risk assets that have high-returns. The authors used simulation models to show the effects that the difference in ownership has on the wealth distribution. Keister further explores ways on how to reduce inequality in wealth distribution in the future.
The resource is a bit outdated. The current economy is not the same as it was 14 years ago. Hence, things have really undergone dynamic changes due to technological knowhow and other aspects that characterize unpredictability of an economy. The asset ownership by different races is not the same as it was 14 years ago.