Wealth Concentration — Definition

Definition

Wealth concentration concerns the share of measured wealth held by different parts of a population. Net wealth subtracts liabilities from assets at a point in time. It is distinct from income received during a period and from immediately available cash.

Asset prices, saving, transfers and debt changes can alter wealth, so a current income figure cannot explain the entire stock. Interpreting concentration requires a defined population, valuation date and accounting boundary, together with attention to the numerator and denominator of any reported top share.