A number of facts that are likely t

A number of facts that are likely to be important have already been noted in the previoussections along with the characterization of the trends. A first point is that an understandingof the development involves both wage and capital income, and thereby thedynamics are at least in part jointly determined by the distributions of income and wealth.For example, the drop in top shares over the first half of the twentieth century was largelya result of decreased capital incomes in the top, which in turn was largely driven bydecreasing wealth shares in this group. High marginal tax rates in the decades after WorldWar II made recovery difficult and caused top shares to decrease even further. We willexplicitly look at these explanations in Section 7.4.2.