Will wealth become more concentrated in Europe? Evidence from a calibrated neo-Kaleckian model

Stefan Ederer and Miriam Rehm

No PKWP1717, Working Papers from Post Keynesian Economics Society (PKES)

Abstract: We develop and calibrate an analytical growth model in the neo-Kaleckian 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’s r > g 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)
JEL-codes: D31 E12 E21 (search for similar items in EconPapers)
Pages: 18
Date: 2017-12
New Economics Papers: this item is included in nep-mac and nep-pke
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Citations: View citations in EconPapers (2)

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