IDEAS home Printed from https://ideas.repec.org/p/gre/wpaper/2013-36.html
   My bibliography  Save this paper

Inequality, Debt and Taxation: The Perverse Relation between the Productive and the Non-Productive Assets of the Economy

Author

Listed:
  • Mario Amendola

    (Università degli Studi di Roma 'La Sapienza')

  • Jean-Luc Gaffard

    (OFCE Sciences Po
    Skema Business School
    University of Nice-Sophia Antipolis, France)

  • Fabrizio Patriarca

    (Università degli Studi di Roma 'La Sapienza')

Abstract

The explosion of the global financial crisis in 2008 and its transmission to the real economies have been interpreted as calling for new kinds of regulation of the banking and the financial systems that would have allowed reestablishing a virtuous relation between the real and the financial sectors of the economy. In this paper we maintain the different view that the financial crisis and the ensuing real crisis have roots in the strong increase in incomes inequality that has been taking place in the Western world in the last thirty years or so. This has created an all around aggregate demand deficiency crisis that has strongly reduced prospects and opportunities for investments in productive capacities and shifted resources toward other uses, thus feeding a perverse relation between the productive and the non-productive assets of the economy. In this context the way out of the crisis is re-establishing the right distributive conditions: which cannot be obtained by a policy aimed at relieving the weight of private debts but calls for a redistribution through taxes on the incomes of non-productive sectors, according to a fine tuning that should prevent from excessive taxations transforming positive into negative effects.

Suggested Citation

  • Mario Amendola & Jean-Luc Gaffard & Fabrizio Patriarca, 2013. "Inequality, Debt and Taxation: The Perverse Relation between the Productive and the Non-Productive Assets of the Economy," GREDEG Working Papers 2013-36, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    • Handle: RePEc:gre:wpaper:2013-36
    as

    Download full text from publisher

    File URL: http://195.220.198.217/GREDEG-WP-2013-36.pdf
    File Function: First version, 2013
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Frank Levy & Peter Temin, 2007. "Inequality and Institutions in 20th Century America," NBER Working Papers 13106, National Bureau of Economic Research, Inc.
    2. Amendola, Mario & Gaffard, Jean-Luc, 1998. "Out of Equilibrium," OUP Catalogue, Oxford University Press, number 9780198293804.
    3. Thomas Piketty & Emmanuel Saez, 2006. "The Evolution of Top Incomes: A Historical and International Perspective," American Economic Review, American Economic Association, vol. 96(2), pages 200-205, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jean-Luc Gaffard, 2015. "Capital, richesse et croissance. De la recherche empirique aux éclairages théoriques," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(1), pages 57-82.
    2. repec:hal:spmain:info:hdl:2441/4eus3ho3fk813p8qcqfc1gaft2 is not listed on IDEAS
    3. Mario Amendola & Jean Luc Gaffard, 2014. "Novelty,Hysteresis,and Growth," Documents de Travail de l'OFCE 2014-12, Observatoire Francais des Conjonctures Economiques (OFCE).
    4. repec:hal:spmain:info:hdl:2441/2pguj421ms98or9o9plc5q0m62 is not listed on IDEAS
    5. repec:hal:spmain:info:hdl:2441/4c4c4nnru58a4obbds13ednod9 is not listed on IDEAS
    6. Mario Amendola & Jean-Luc Gaffard, 2014. "Novelty, Hysteresis, and Growth," SciencePo Working papers Main hal-01027426, HAL.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mario Amendola & Jean-Luc Gaffard & Fabrizio Patriarca, 2017. "Inequality and growth: the perverse relation between the productive and the non-productive assets of the economy," Journal of Evolutionary Economics, Springer, vol. 27(3), pages 531-554, July.
    2. repec:hal:spmain:info:hdl:2441/4ip86c7fo58bj979c67ml0ohqh is not listed on IDEAS
    3. repec:hal:spmain:info:hdl:2441/f6h8764enu2lskk9p4sq3h62k is not listed on IDEAS
    4. Nikos Koutsiaras, 2010. "How to Spend it: Putting a Labour Market Modernization Fund in Place of the European Globalization Adjustment Fund," Journal of Common Market Studies, Wiley Blackwell, vol. 48(3), pages 617-640, June.
    5. Christopher Tsoukis & Frédéric Tournemaine, 2013. "Status In A Canonical Macro Model: Labour Supply, Growth And Inequality," Manchester School, University of Manchester, vol. 81(s2), pages 65-92, October.
    6. Kuhn, Andreas, 2012. "Redistributive Preferences, Redistribution, and Inequality: Evidence from a Panel of OECD Countries," IZA Discussion Papers 6721, Institute of Labor Economics (IZA).
    7. David R. Howell, Mamadou Diallo, 2007. "WP 2007-6 Charting U.S. Economic Performance with Alternative Labor Market Indicators: The Importance of Accounting for Job Quality," SCEPA working paper series. 2007-6, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
    8. Thomas Lemieux, 2008. "The changing nature of wage inequality," Journal of Population Economics, Springer;European Society for Population Economics, vol. 21(1), pages 21-48, January.
    9. Gordon, Robert J. & Dew-Becker, Ian, 2008. "Controversies about the Rise in American Inequality: A Survey," CEPR Discussion Papers 6817, C.E.P.R. Discussion Papers.
    10. Salvatore Morelli, 2018. "Banking crises in the US: the response of top income shares in a historical perspective," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 16(2), pages 257-294, June.
    11. Steven N. Kaplan & Joshua Rauh, 2010. "Wall Street and Main Street: What Contributes to the Rise in the Highest Incomes?," NBER Chapters, in: Corporate Governance, National Bureau of Economic Research, Inc.
    12. Jörg Bibow, 2010. "Alternative Strategien der Budgetkonsolidierung in Österreich nach der Rezession," IMK Studies 03-2010, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    13. Andreas Kuhn, 2012. "Redistributive Preferences, Redistribution and Inequality: Evidence from a Panel of OECD Countries," NRN working papers 2012-08, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
    14. Dilip Das, 2008. "Contemporary Phase of Globalization: Does It Have a Serious Downside?," Global Economic Review, Taylor & Francis Journals, vol. 37(4), pages 507-526.
    15. Mario Amendola & Jean-Luc Gaffard & Fabricio Patriarca, 2013. "Inequality debt and taxation the perverse relation between the productive and the non productive assets of the economy," SciencePo Working papers Main hal-03470563, HAL.
    16. Lane Kenworthy, 2010. "How Much Do Presidents Influence Income Inequality?," Challenge, Taylor & Francis Journals, vol. 53(2), pages 90-112.
    17. Yanhui Wu, 2011. "A Simple Theory of Managerial Talent, Pay Contracts and Wage Distribution," CEP Discussion Papers dp1067, Centre for Economic Performance, LSE.
    18. Till van Treeck, 2012. "Did inequality cause the U.S. financial crisis?," IMK Working Paper 91-2012, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    19. Andreas Kuhn, 2012. "Redistributive preferences, redistribution, and inequality: Evidence from a panel of OECD countries," ECON - Working Papers 084, Department of Economics - University of Zurich.
    20. Nikos Koutsiaras, 2010. "How to Spend it: Putting a Labour Market Modernization Fund in Place of the European Globalization Adjustment Fund," Journal of Common Market Studies, Wiley Blackwell, vol. 48, pages 617-640, June.
    21. David Howell & Mamadou Diallo, 2008. "The Importance of Accounting for Job Quality:," Challenge, Taylor & Francis Journals, vol. 51(1), pages 26-44.
    22. Jeffrey Thompson & Timothy M. Smeeding, 2010. "Recent Trends in the Distribution of Income: Labor, Wealth and More Complete Measures of Well Being," Working Papers wp225, Political Economy Research Institute, University of Massachusetts at Amherst.

    More about this item

    Keywords

    Assets; debt; inequality; taxation;
    All these keywords.

    JEL classification:

    • D30 - Microeconomics - - Distribution - - - General
    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gre:wpaper:2013-36. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Patrice Bougette (email available below). General contact details of provider: https://edirc.repec.org/data/credcfr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.