The richest 1% is richer than previously thought and instead of an estimate of the richest controlling 30% of US wealth it may be as high as 37%, while Germany’s richest hold 33% of the country's wealth compared with the 24% survey data previously indicated, according to European Central Bank (ECB) research.
Philip Vermeulen, an economist at the ECB,
a paper that by using data from Forbes' billionaires lists in a new
analysis, his estimates the share of wealth controlled by America's top 1% is
between 35% and 37%.
The paper says: "Good measurement of these relative shares of wealth holdings are important. For instance, macro-economic models are sometimes calibrated using these shares. In addition, the wealth distribution is a topic of broad public interest. "
It adds: "Up to recently, relatively little was known about the wealth distribution of households for most countries in the euro area. That should not be too surprising. Knowledge of thewealth distribution of households is only possible if it is somehow measured."
The rich tend to understate their wealth in surveys.
The richest Italians control 20% of national wealth compared with the 14% earlier suggested.
In the Netherlands, for instance, the top 1% of
the wealthy are estimated to control 26% of the country's wealth, but
Vermeulen's analysis boosted that to 28% to 35%.
© Copyright 2011 by Finfacts.com