Wealth inequality in the long run: A Schumpeterian growth perspective

Jakob Madsen, Antonio Minniti and Francesco Venturini ()

CAMA Working Papers from Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University

Abstract: This paper extends Piketty’s analysis of the wealth-income ratio used as a proxy for wealth inequality, to allow for innovation. Drawing on a Schumpeterian (R&D-based) growth model that incorporates both tangible and intangible capital and using historical data for 21 OECD countries, we find the wealth-income ratio to be significantly and positively related to R&D intensity and the fixed capital investment ratio, but negatively related to income growth. Accounting for the innovation-induced counteracting growth-effect on the wealth-income ratio, we show that the net effect of R&D on wealth inequality is positive.

Keywords: Wealth-income Ratio; Piketty's Second Law; Schumpeterian Growth. (search for similar items in EconPapers)
JEL-codes: D30 E10 E20 O30 O40 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2018-07
New Economics Papers: this item is included in nep-gro, nep-his, nep-ino, nep-mac, nep-pke and nep-sbm
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://cama.crawford.anu.edu.au/sites/default/fil ... inniti_venturini.pdf (application/pdf)

Related works:
Journal Article: Wealth Inequality in the Long Run: A Schumpeterian Growth Perspective (2021)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:een:camaaa:2018-35

Access Statistics for this paper

More papers in CAMA Working Papers from Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University Contact information at EDIRC.
Bibliographic data for series maintained by Cama Admin ().