Recent studies of economic inequality almost always separately examine income inequality,
consumption inequality, and wealth inequality, and hence, these studies miss the important
synergy between the three measures explicit in the life-cycle budget constraint. Using the
Panel Study of Income Dynamics (PSID), we study inequality in three dimensions, focusing
on the conjoint distributions of income, consumption, and wealth for the same individuals.
We find that the trends in inequality in income, consumption, and wealth similarly increase …