Economic Size and Debt Sustainability against Piketty's "Capital Inequality"

Hyejin Cho ()
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Hyejin Cho: CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique

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Abstract: This article presents a methodology designed to facilitate alternative variables measuring economic growth. A capital-labor split of Cobb-Douglas function is adapted for use in the context of economic growth. A capital/income ratio and two fundamental law of capitalism originated by Thomas Piketty illustrate capital inequality undervalued than labor inequality. In addition, the article includes export and external debt as strong alternatives. Empirical data of the World Bank are analyzed to demonstrate broad differences in economic sizes. The case analysis on Latin America as an example of different sized economy is also discussed.

Keywords: Debt sustainability; Latin America; Import substitution industrialization (ISI) model; Capitalism; capital/income ratio; Economic size; Thomas Piketty; factors of production; Capital-labor split; External debt to exports ratio; Openness; Insolvent external debt (search for similar items in EconPapers)
Date: 2015-03-01
Note: View the original document on HAL open archive server: https://hal.science/hal-01068227v2
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Published in ACRN Journal of Finance and Risk Perspectives, 2015, Issue: II/2015 - Current Regular Issue, Vol. 4, Issue 2 (ISSN 2305-7394), pp.21-42

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Persistent link: https://EconPapers.repec.org/RePEc:hal:cesptp:hal-01068227

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