Testing Piketty’s Hypothesis on the Drivers of Income Inequality PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Testing Piketty’s Hypothesis on the Drivers of Income Inequality PDF full book. Access full book title Testing Piketty’s Hypothesis on the Drivers of Income Inequality by Carlos Góes. Download full books in PDF and EPUB format.
Author: Carlos Góes
Publisher: International Monetary Fund
ISBN: 1475527691
Category : Business & Economics
Languages : en
Pages : 27
Get Book Here
Book Description
Thomas Piketty's Capital in the Twenty-First Century puts forth a logically consistent explanation for changes in income and wealth inequality patterns. However, while rich in data, the book provides no formal empirical testing for its theoretical causal chain. In this paper, I build a set of Panel SVAR models to check if inequality and capital share in the national income move up as the r-g gap grows. Using a sample of 19 advanced economies spanning over 30 years, I find no empirical evidence that dynamics move in the way Piketty suggests. Results are robust to several alternative estimates of r-g.
Author: Carlos Góes
Publisher: International Monetary Fund
ISBN: 1475527691
Category : Business & Economics
Languages : en
Pages : 27
Get Book Here
Book Description
Thomas Piketty's Capital in the Twenty-First Century puts forth a logically consistent explanation for changes in income and wealth inequality patterns. However, while rich in data, the book provides no formal empirical testing for its theoretical causal chain. In this paper, I build a set of Panel SVAR models to check if inequality and capital share in the national income move up as the r-g gap grows. Using a sample of 19 advanced economies spanning over 30 years, I find no empirical evidence that dynamics move in the way Piketty suggests. Results are robust to several alternative estimates of r-g.
Author: Thomas Piketty
Publisher: Harvard University Press
ISBN: 0674979850
Category : Business & Economics
Languages : en
Pages : 817
Get Book Here
Book Description
What are the grand dynamics that drive the accumulation and distribution of capital? Questions about the long-term evolution of inequality, the concentration of wealth, and the prospects for economic growth lie at the heart of political economy. But satisfactory answers have been hard to find for lack of adequate data and clear guiding theories. In this work the author analyzes a unique collection of data from twenty countries, ranging as far back as the eighteenth century, to uncover key economic and social patterns. His findings transform debate and set the agenda for the next generation of thought about wealth and inequality. He shows that modern economic growth and the diffusion of knowledge have allowed us to avoid inequalities on the apocalyptic scale predicted by Karl Marx. But we have not modified the deep structures of capital and inequality as much as we thought in the optimistic decades following World War II. The main driver of inequality--the tendency of returns on capital to exceed the rate of economic growth--today threatens to generate extreme inequalities that stir discontent and undermine democratic values if political action is not taken. But economic trends are not acts of God. Political action has curbed dangerous inequalities in the past, the author says, and may do so again. This original work reorients our understanding of economic history and confronts us with sobering lessons for today.
Author: Francesco Grigoli
Publisher: International Monetary Fund
ISBN: 1475569041
Category : Business & Economics
Languages : en
Pages : 33
Get Book Here
Book Description
The combination of stagnant growth and high levels of income inequality renewed the debate about whether a more even distribution of income can spur economic activity. This paper tests for cross-country convergence in income inequality and estimates its impact on economic growth with a heterogeneous panel structural vector autoregression model, which addresses some empirical challenges plaguing the literature. We find that income inequality is converging across countries, and that its impact on economic growth is heterogeneous. In particular, while the median response of real per capita GDP growth to shocks in income inequality is negative and significant, the dispersion around the estimates is large, with at least one fourth of the countries in the sample presenting a positive effect. The results suggest that the negative effect is mainly driven by the Middle East and Central Asia and the Western Hemisphere across regions, and emerging markets across income levels. Finally, we find evidence that improved institutional frameworks can reduce the negative effect of income inequality on growth.
Author: Daniel Lacalle
Publisher: Post Hill Press
ISBN: 1642934348
Category : Business & Economics
Languages : en
Pages : 200
Get Book Here
Book Description
Capitalism offers greater prosperity and opportunity for everyone, while socialism, unnecessary interventionism, and other choices inevitably fail. But capitalism is quickly falling out of favor with the middle class in the Western world. Fortunately, it can be fixed. The next decades will present numerous challenges: exponentially accelerating technology and use of robots, an aging population, repressive taxation, and the sustainability of education and health care costs—to name just a few. Freedom or Equality addresses those challenges while presenting a fresh examination of Social Capitalism—a moderate option between extreme solutions of all sorts that can deliver superior growth and prosperity worldwide.
Author: Tarik Akin
Publisher: Walter de Gruyter GmbH & Co KG
ISBN: 3110586665
Category : Business & Economics
Languages : en
Pages : 216
Get Book Here
Book Description
Wealth inequality has been not only rising at unsustainable pace but also dissociated from income inequality because of the fact that wealth is increasing without concomitant increase in savings and productive capital. Compelling evidence indicates that capital gains and other economic rents are mainly responsible for wealth inequality and its divergence from income inequality. The main argument of the book is that interest-based debt contracts are one of the drivers of wealth inequality through creating disproportional economic rents for the asset-rich. The book also introduces the idea of risk-sharing asset-based redistribution, which is a novel and viable policy proposal, as an effective redistribution tool to address the wealth inequality problem. Furthermore, a large-scale stock-flow consistent macroeconomic model, which is step by step constructed in the book, sheds light on the formation of wealth inequality in a debt-based economy and on the prospective benefits of implementing risk-sharing asset-based redistribution policy tools compared to traditional redistribution policy options. The research presented in this book is novel in many respects and first of its kind in the Islamic economics and finance literature.
Author: Thomas Piketty
Publisher: Yale University Press
ISBN: 0300259662
Category : Political Science
Languages : en
Pages : 355
Get Book Here
Book Description
A chronicle of recent events that have shaken the world, from the author of Capital in the Twenty-First Century "What makes this manifesto noteworthy is that it comes from . . . an economist who gained his reputation as a researcher with vaguely left-of-center sensibilities but was far from a radical. Yet the times are such . . . that even honest moderates are driven to radical remedies."--Robert Kuttner, New York Times As a correspondent for the French newspaper Le Monde, world-renowned economist Thomas Piketty has documented the rise and fall of Trump, the drama of Brexit, Emmanuel Macron's ascendance to the French presidency, the unfolding of a global pandemic, and much else besides, always from the perspective of his fight for a more equitable world. This collection brings together those articles and is prefaced by an extended introductory essay, in which Piketty argues that the time has come to support an inclusive and expansive conception of socialism as a counterweight against the hypercapitalism that defines our current economic ideology. These essays offer a first draft of history from one of the world's leading economists and public figures, detailing the struggle against inequalities and tax evasion, in favor of a federalist Europe and a globalization more respectful of work and the environment.
Author: Carlos Lopes
Publisher: Springer
ISBN: 3030012913
Category : Political Science
Languages : en
Pages : 169
Get Book Here
Book Description
“Lopes brings his rigour, insight, and experience to this timely new book, presenting a compelling rethink of traditional development models in Africa and the need to seize on transformational change to build a sustainable future for the continent." —Kofi Annan, former United Nations Secretary General “Some readers will enjoy Lopes’ eclectic brilliance and breath-taking culture. Others will salute his ability to bring compelling new angles to every topic. Everyone will be impressed with his craftsmanship, his rich and multi-faceted approach to development, and his high ethical standards. It is impossible to read this jewel book and not feel smarter.” —Célestin Monga, African Development Bank’s Vice President and Chief Economist “Drawing on his distinguished academic career, policy experience at the highest level, and deep love of the continent, Lopes provides a visionary analysis of Africa's current problems and future prospects. This book provides a highly unusual combination of intellectualism and hard-nosed pragmatism. A singular achievement.” —Ha-Joon Chang, University of Cambridge, UK “Thorough, thought-provoking, and beyond rhetoric: definitely a must-read for anyone who wants to understand Africa’s present and future.” —Enrico Letta, former Prime Minister of Italy, Dean of the Paris School of International Affairs, Sciences Po, France Lopes delivers an overview of the critical development issues facing the African continent today. He offers readers a blueprint of policies to address issues, and an intense, heartfelt meditation on the meaning of economic development in the age of democratic doubts, identity crises, global fears and threatening issues of sustainability.
Author: Stephen D. King
Publisher: Yale University Press
ISBN: 0300234503
Category : Political Science
Languages : en
Pages : 303
Get Book Here
Book Description
A controversial look at the end of globalization and what it means for prosperity, peace, and the global economic order Globalization, long considered the best route to economic prosperity, is not inevitable. An approach built on the principles of free trade and, since the 1980s, open capital markets, is beginning to fracture. With disappointing growth rates across the Western world, nations are no longer willing to sacrifice national interests for global growth; nor are their leaders able--or willing--to sell the idea of pursuing a global agenda of prosperity to their citizens. Combining historical analysis with current affairs, economist Stephen D. King provides a provocative and engaging account of why globalization is being rejected, what a world ruled by rival states with conflicting aims might look like, and how the pursuit of nationalist agendas could result in a race to the bottom. King argues that a rejection of globalization and a return to "autarky" will risk economic and political conflict, and he uses lessons from history to gauge how best to avoid the worst possible outcomes.
Author: Carlos Lopes
Publisher: Springer Nature
ISBN: 3031575911
Category :
Languages : en
Pages : 260
Get Book Here
Book Description
Author: Nauro F. Campos
Publisher: International Monetary Fund
ISBN:
Category :
Languages : en
Pages : 43
Get Book Here
Book Description
This paper provides new estimates of Okun’s unemployment-output relationship in euro area countries between 1979 and 2019. We find our structural estimates are stable but substantially lower than the reduced-form estimates that tend to characterise the literature and that the responsiveness of output to unemployment is driven by idiosyncratic factors in both euro core and periphery countries. The results are robust to conditioning on wage bargaining institutional set-ups and, yet, in the euro periphery, we find product market regulation as playing a major role in explaining the significance of Okun’s law estimates across countries.
