{"id":57533,"date":"2023-12-01T20:10:51","date_gmt":"2023-12-01T19:10:51","guid":{"rendered":"https:\/\/www.wifo.ac.at\/publication\/making-sense-of-pikettys-fundamental-laws-in-a-post-keynesian-framework\/"},"modified":"2024-08-06T11:40:20","modified_gmt":"2024-08-06T09:40:20","slug":"making-sense-of-pikettys-fundamental-laws-in-a-post-keynesian-framework","status":"publish","type":"publication","link":"https:\/\/www.wifo.ac.at\/en\/publication\/57533\/","title":{"rendered":"Making sense of Piketty's \"fundamental laws\" in a Post-Keynesian framework"},"content":{"rendered":"","protected":false},"featured_media":0,"template":"","class_list":["post-57533","publication","type-publication","status-publish","hentry"],"acf":{"subtitle":"","text":"Piketty's main theoretical prediction is that a small elite will own all wealth if capitalism is left to its own devices. We formulate and calibrate a Post-Keynesian model with an endogenous distribution of wealth between workers and capitalists. The model permits Piketty's corner solution of all wealth held by capitalists; however, it also shows that interior solutions with a stable, non-zero wealth share of workers, a stable wealth-to-income ratio, and a stable and positive gap between the profit and the growth rate are determined by the Cambridge equation. Furthermore, simulations show that the model conforms to Piketty's empirical findings in a transitional phase, in which the wealth share of capitalists rises to over 60 percent, the wealth-to-income ratio increases, and income inequality rises. Finally, we show that the introduction of a wealth tax as suggested by Piketty could neutralise the rise in wealth concentration.","onlinedate":"2018-01-01 01:00:00","lang":"English","publication_series":"PKSG Working Papers","publication_date":"20180101","publication_date_year":"2018","publication_date_full":false,"publication_num_pages":"","keywords":"[]","jelcodes":"[]","related_publications":"[]","pdf":null,"zip":null,"link":"https:\/\/www.postkeynesian.net\/working-papers\/1808\/","monthly_report":false,"monthly_report_main":false,"monthly_report_volume":"","monthly_report_pages":"","monthly_report_pages_sort":"0","issue":"","journal":"","publisher":"","invisible":false,"external":true,"embargo_date":null,"types":[208554],"research_groups":[3500],"collaboration":"","persons":[3567,4619],"persons_data":"[{\"personId\":3567,\"personName\":\"Stefan Ederer\",\"organisationNames\":[]},{\"personId\":4619,\"personName\":\"Miriam Rehm\",\"organisationNames\":[]}]","clients":[],"subclients":[],"partners":[],"topics":[],"host_publication_title":"","host_publication_subtitle":"","place_of_publication":"","host_publication_editors":"[]","type_description":"","output_media":"","chapter":"","article_number":"","scientific_assistance":"[]","scientific_review":"[]","version":"","release_date":null,"expiration_date":null,"surveyor":"","research_assistance":"","edv":"","additional_info_de":"","additional_info_en":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.3 (Yoast SEO v27.3) - 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