Intuitively I assume that the amount of wealth in a society is the starting point for investment. That is, wealth is invested and by so doing it generates a stream of income. Part of this income is consumed the rest goes to increase the available wealth. The cycle then can start again.
Intuitively, I also assume that when wealth is highly concentrated, then a few people will be in control of the investment flows.
I would be interested in knowing if in macro-ecoomics the investment function depends (among other things) also on the total amount of wealth and on its concentration. I would be interested in research that deals both with the theorethical model and with the empirical analysis of this relationship.
Actually investment depends on the wealth, income, consumption and savings. More wealth indicates more more income, more consumption, more savings and finally more investment.
Thanks Tarik. Could you please point me to some papers? Additionally, is there research looking for example at how Gross Fixed Capital Formation depends on wealth and its concentration?
See this link for this question : https://www.2030spotlight.org/en/book/1730/chapter/1-increasing-concentration-wealth-and-economic-power-obstacle-sustainable
you all right. but the continues of this cycle depends on the the economic stability and mainly on stability in purchasing power.
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