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Macroeconomics and European Economic Policy

Books, journals and papers (883 hits)

If Piketty's main theoretical prediction (r > g leads to rising wealth inequality) is taken to its radical conclusion, then 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 which permits such a corner solution of all wealth held by capitalists. However, it also shows 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 determined by the Cambridge equation. More importantly, simulations show that the model conforms to Piketty's empirical findings during a transitional phase of increasing wealth inequality, which characterizes the current state of high-income countries: 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 neutralize this rise in wealth concentration predicted by our model.
Vortrag, WU Wien, 24.-25.2.2020
Organised by: Austrian Economic Association
We develop and calibrate an analytical growth model in the Post-Keynesian 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 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.
Vortrag, 17.12.2019
Fachbeirat Unternehmensstatistik und Außenhandel
Vortrag, Wien, 10.12.2019
Organised by: Federation of Austrian Industry
Austrian Institute of Economic Research economist Margit Schratzenstaller's intervention focused on the bigger picture. "Future-proofing fiscal policies is key to implementing current action plans to address increasing inequality, migration, and global warning", she said. A reform of the rules is therefore imperative to close the 600 billion € investment gap that the EU currently faces. A reformed EU budget should finance expenditure that yields more returns when engaged at the EU level, like R&D, and should be financed with innovative taxes that cannot be properly implemented at national level, like a financial transaction tax and an airline travel tax. Finally, "we desperately need a harmonisation of tax policy" she said, "to shift the burden away from labour taxation towards profit taxation, through for instance a minimum corporate tax".
Vortrag, Tulln, 18.11.2019
Organised by: Unternehmensservice der Stadtgemeinde Tulln
Vortrag, Wien, 14.11.2019
Organised by: Economic Chamber Vienna, Landesgremium Wien des Maschinen- und Technologiehandels, Sparte Handel
Vortrag, Vienna, 13.11.2019
Organised by: Federal Ministry for Europe, Integration and Foreign Affairs
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