Is Inequality Increasing in r-g? The Dynamics of Capital’s Income Share in the UK, 1210-2013
Jakob Madsen ()
No HIAS-E-70, Discussion paper series from Hitotsubashi Institute for Advanced Study, Hitotsubashi University
This paper provides the first very long term empirical examination of Piketty’s (2014) controversial hypothesis that inequality is increasing in r – g, (assets - real income). Using unique annual data on asset returns for a balanced portfolio and several other variables for the UK over the period 1210-2013, the study examines whether the dynamics in capital’s income share, SW, are governed by (r–g). The analysis confirms that r and g are robust and significant determinants of factor shares and that they have been the major forces behind the large inequality waves over the past eight centuries.
Keywords: Inequality and the (r-g)-gap; dynamics of inequality; inequality in the UK; 1210-2013 (search for similar items in EconPapers)
JEL-codes: E1 E2 O4 N1 N30 P1 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-gro, nep-his, nep-hpe and nep-mac
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Persistent link: https://EconPapers.repec.org/RePEc:hit:hiasdp:hias-e-70
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