Redistributive Growth

Enrico Perotti and Döttling, Robin
Authors registered in the RePEc Author Service: Robin Döttling

No 13984, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We study long term effects of the technological shift to intangible capital, whose creation relies on the commitment of skilled human capital in firm production. Humancapital cannot be owned, so firms need less financing. Human capital cannot be credibly committed so firms need to reward it by deferred compensation, diluting future profits. As human capital income is not tradeable, total investable assets fall. The general equilibrium effect is a gradual fall in interest rates and a re-allocation of excess savings into rising valuations of existing assets such as real estate. The concomitant rise in house prices and wage inequality leads to higher household leverage.

Keywords: Intangible capital; Skill premium; Knowledge based technological change; Human capital; Excess savings; Mortgage credit (search for similar items in EconPapers)
JEL-codes: D33 E22 G32 J24 (search for similar items in EconPapers)
Date: 2019-09
New Economics Papers: this item is included in nep-cfn, nep-lma, nep-mac and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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