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Estimates of Wealth Distribution Are Widely Wrong

Posted By Barry Ritholtz On October 6, 2010 @ 5:48 pm In Current Affairs,Mathematics,Psychology | Comments Disabled

I’ve been meaning to get to this chart for some time, so I am glad Good [1] reminded me to:

The actual United States wealth distribution plotted against the estimated and ideal distributions across all respondents.

[2]

The actual United States wealth distribution plotted against the estimated and ideal distributions of respondents of different income levels, political affiliations, and genders.

[3]

>

This raises two questions in my mind:

Why are wealth estimates so wildly wrong?

What does this mean over the long haul in terms of balanced budgets, social security, national health care, etc.

I don’t know what the answers are — but i suspect the discussion can be intriguing.

Have at it. . .

>

Source:
Americans Are Horribly Misinformed About Who Has Money [1]
Andrew Price
Good, September 28, 2010
http://www.good.is/post/americans-are-horribly-misinformed-about-who-has-money/

Building a Better America – One Wealth Quintile at a Time [4]
Michael I. Norton,Harvard Business School
Dan Ariely, Duke University
Forthcoming in Perspectives on Psychological Science
http://www.people.hbs.edu/mnorton/norton%20ariely%20in%20press.pdf


Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2010/10/estimates-of-wealth-distribution-are-widely-wrong/

URLs in this post:

[1] Good: http://www.good.is/post/americans-are-horribly-misinformed-about-who-has-money/

[2] Image: http://www.ritholtz.com/blog/wp-content/uploads/2010/10/Wealth-estimates-quintiles.png

[3] Image: http://www.ritholtz.com/blog/wp-content/uploads/2010/10/Estimate-breakdown.png

[4] Building a Better America – One Wealth Quintile at a Time: http://www.people.hbs.edu/mnorton/norton%20ariely%20in%20press.pdf

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