Title

A Note On Piketty’s Logic

Document Type

Article

Publication Date

9-2016

Published In

Eastern Economic Journal

Abstract

I derive a simple model that allows us to see some hidden assumptions behind Thomas Piketty’s predictions of increasing inequality in his widely selling book Capital in the 21st Century. Although his proposition about the increasing share of capital income in the national income has not held true in the last six decades, I briefly explore whether his prediction (and past trends) will continue in the future.

Keywords

D33, D31, O40, capital share, economic growth