Will wealth become more concentrated in Europe? Evidence from a calibrated Post-Keynesian model

Stefan Ederer and Miriam Rehm

Cambridge Journal of Economics, 2020, vol. 44, issue 1, 55-72

Abstract: We develop and calibrate an analytical growth model in the Post-Keynesian tradition with an endogenous wealth distribution and differential returns to wealth between workers and capitalists. We show that a long-run equilibrium allows for non-zero wealth owned by workers, even as the model contains the ‘triumph of the rentier’ predicted by Piketty as a special case. The model’s calibration to ten European countries shows that the distribution of wealth is likely to become more unequal in all cases, barring political countermeasures.

Keywords: Inequality; Wealth; Income; Neo-Kaleckian theory; Model calibration (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (6)

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