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A Note On Piketty’s Logic

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  • Frederic L Pryor

    (Department of Economics, Swarthmore College)

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.

Suggested Citation

  • Frederic L Pryor, 2016. "A Note On Piketty’s Logic," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 42(4), pages 663-665, September.
    • Handle: RePEc:pal:easeco:v:42:y:2016:i:4:d:10.1057_eej.2015.21
    DOI: 10.1057/eej.2015.21
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    References listed on IDEAS

    as
    1. Daron Acemoglu & James A. Robinson, 2015. "The Rise and Decline of General Laws of Capitalism," Journal of Economic Perspectives, American Economic Association, vol. 29(1), pages 3-28, Winter.
    2. David Colander, 2015. "Marketing Economic Ideas: The Problem with Capital," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 41(1), pages 1-5, January.
    3. Brent Neiman, 2014. "The Global Decline of the Labor Share," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(1), pages 61-103.
    Full references (including those not matched with items on IDEAS)

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    Keywords

    capital share; economic growth;

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