Measuring Wealth: Income Capitalization with Heterogeneous Rates of Return

Berman Y., Iacono R., and Vesperoni A.

In many countries, the income distribution is well measured in tax data, whereas the wealth distribution remains unobserved and is typically proxied using survey data. This paper develops a method to estimate the unobserved wealth distribution from the observed income distribution. Our approach extends the standard income-capitalization method and, using the same data inputs, yields a richer set of estimates by allowing for heterogeneity in individuals’ capacities to generate returns. In an empirical application based on administrative tax return data, we provide alternative estimates of the distributions of wealth held in stocks and deposits by the Norwegian population.

Slides available here

Dual Income Taxation and Top Income Shares

Ceraolo M., Iacono R., F. Rios-Avila.

CESifo Working Paper No. 12642

Submitted.

Switching off the asset test: evidence from housing allowance in Norway

Iacono R., Smedsvik B. and Valetto P.

Slides available here

 

Additional projects

Facius D. & Iacono R., “Labor Market Consequences of Generative AI: Early Evidence from Norway”. CESifo WP No. 12752. Submitted. Media coverage: Norwegian SciTech News.

Buhler J., Iacono R. and Ranaldi M., “Capital and Labor Income Mobility”. World Inequality Lab Working Paper 2025/24. Submitted. Media coverage: Norwegian SciTech News.

Iacono R. and K.C. Vadlamannati, “The Substitution Trap: Development Aid and the Composition of Government Spending in Indian States”. Submitted.