Dynamics of Individual Wealth Accumulation: A Use of Simulation Methods for Estimating Limited Dependent-Variables Models

摘要

This paper presents an estimation of the behaviour of wealth accumulation, carried out on panel data. One of the aims of the study is to test some of the predictions resulting from the buffer-stock model of saving, especially the unit permanent incomeelasticity of wealth accumulation and the shape of the age profile. However, in the data available the wealth variable is not continuous. It is known only through a system of eleven intervals. Therefore, methods based on the use of the simulator by Geweke, Hajivassiliou and Keane have been implemented to obtain consistent estimators.