We develop and calibrate an analytical growth model in the neo-Kaleckian tradition with an endogenous wealth distribution
and differential returns to wealth between workers and capitalists. We show that a long-run equilibrium allows for non-zero
wealth owned by workers, even as the model contains the "triumph of the rentier" predicted by Piketty's r > g as a special
case. The model's calibration to ten European countries shows that the distribution of wealth is likely to become more unequal
in all cases, barring political countermeasures.
JEL-Codes:D31, E12, E21
Keywords: inequality, wealth, income, neo-Kaleckian theory, model calibration
Research group:Macroeconomics and European Economic Policy