Retrospective predictions of the wealth inequality in the US.

The blue and red curves present the historical market behavior and the model behavior for the historical values of the parameters, respectively (see Fig 4). The results for the various scenarios during 1980–2010 (A) and during 2000–2010 (B) are also presented: Unchanged parameter scenario (solid black curve), decreasing savings scenario (red diamonds), decreasing savings and increasing α scenario (red stars) and increasing savings and decreasing α scenario (green crosses). The significant difference between the results for the increasing savings and decreasing α scenario in (A) and (B) is due to the fast savings fraction increase in (B) (from 4% to 15% within 10 years), compared to a mild increase in (A) (from 7% to 15% within 30 years). The dotted gray line separates the calculation using historical parameter values and the retrospective prediction.