Wealth-Income Ratios in Free Market Capitalism: Switzerland, 1900-2020

Enea Baselgia and Isabel Martínez

No 9976, CESifo Working Paper Series from CESifo

Abstract: We estimate the ratio of private wealth to national income, βpt, for Switzerland from 1900 to 2020. Our results indicate that over the 20th century, βpt did not follow a U-shaped pattern as in most European countries. Instead, its was exceptionally stable at around 500%. We argue that this consistently high βpt was the result of geopolitical factors combined with Switzerland’s capital friendly policy-making. Since the turn of the century, however, βpt has been on a rapid rise to reach 793% in 2020. This considerable increase is mainly driven by large capital gains, especially in housing wealth.

Keywords: wealth-income ratio; distribution; economic growth; housing prices (search for similar items in EconPapers)
JEL-codes: D31 D33 E01 N34 (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-fdg and nep-his
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_9976

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