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Does housing wealth contribute to wealth inequality? A tale of two New Yorks

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Listed:
  • Guillaume Allegre

    (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po)

  • Xavier Timbeau

    (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po)

Abstract

In Capital in the 21st century (hereafter Capital), Thomas Piketty points outthe risk of a concentration of wealth in the twenty-first century that would threaten the social justice and meritocratic values of our democratic societies.The main force of divergence is due to the fact that net returns on capital (r) are expected to be greater than the growth of the economy (g), or: "r>g".According to Piketty, this will lead to two undesirable consequences: firstly,wealth will have a tendency to concentrate in the hands of a few; secondly,constituted wealth will tend to dominate accumulated wealth from labour:"the past devours the future".

Suggested Citation

  • Guillaume Allegre & Xavier Timbeau, 2015. "Does housing wealth contribute to wealth inequality? A tale of two New Yorks," SciencePo Working papers Main hal-03470245, HAL.
    • Handle: RePEc:hal:spmain:hal-03470245
    Note: View the original document on HAL open archive server: https://hal-sciencespo.archives-ouvertes.fr/hal-03470245
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    References listed on IDEAS

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    1. Odran Bonnet & Pierre-Henri Bono & Guillaume Chapelle & Etienne Wasmer, 2014. "Does housing capital contribute to inequality? A comment on Thomas Piketty’s Capital in the 21st Century," Sciences Po Economics Discussion Papers 2014-07, Sciences Po Departement of Economics.
    2. Buiter, Willem H., 2010. "Housing wealth isn't wealth," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 4, pages 1-29.
    3. Guillaume Allegre & Xavier Timbeau, 2014. "The critique of capital in the twenty first century in search of the macroeconomic foundations of inequality," Sciences Po publications 2014-10, Sciences Po.
    4. repec:hal:spmain:info:hdl:2441/30nstiku669glbr66l6n7mc2oq is not listed on IDEAS
    5. repec:hal:spmain:info:hdl:2441/4g0qd281j48jib2k4okap9f4eo is not listed on IDEAS
    6. repec:hal:wpspec:info:hdl:2441/30nstiku669glbr66l6n7mc2oq is not listed on IDEAS
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    Cited by:

    1. Rowan Arundel & Richard Ronald, 2021. "The false promise of homeownership: Homeowner societies in an era of declining access and rising inequality," Urban Studies, Urban Studies Journal Limited, vol. 58(6), pages 1120-1140, May.

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