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Does growth promote Equality? A Note on Piketty's capital on the twenty-first century

Author

Listed:
  • Alvaro Rodriguez

    (Rutgers University)

Abstract

A simple model of the distribution of wealth is presented. In such a model the distribution of wealth follows a Pareto type II distribution whose parameters depend on the growth rates discussed in the book. Compared to previous studies of the asymptotic distribution of wealth in economies subject to multiplicative random shocks, our model can make the argument that growth promotes equality accessible to a larger audience.

Suggested Citation

  • Alvaro Rodriguez, 2014. "Does growth promote Equality? A Note on Piketty's capital on the twenty-first century," Economics Bulletin, AccessEcon, vol. 34(3), pages 2044-2050.
    • Handle: RePEc:ebl:ecbull:eb-14-00699
    as

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    References listed on IDEAS

    as
    1. Thomas Piketty & Emmanuel Saez, 2012. "A Theory of Optimal Capital Taxation," NBER Working Papers 17989, National Bureau of Economic Research, Inc.
    2. Weil, Philippe, 1989. "Overlapping families of infinitely-lived agents," Journal of Public Economics, Elsevier, vol. 38(2), pages 183-198, March.
    3. Rodriguez, Alvaro, 1985. "Entry and price dynamics in a perfect foresight model," Journal of Economic Dynamics and Control, Elsevier, vol. 9(3), pages 251-271, November.
    4. Barry C. Arnold, 2008. "Pareto and Generalized Pareto Distributions," Economic Studies in Inequality, Social Exclusion, and Well-Being, in: Duangkamon Chotikapanich (ed.), Modeling Income Distributions and Lorenz Curves, chapter 7, pages 119-145, Springer.
    Full references (including those not matched with items on IDEAS)

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    JEL classification:

    • D3 - Microeconomics - - Distribution
    • E1 - Macroeconomics and Monetary Economics - - General Aggregative Models

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