A couple of days ago I was invited to give comments on Joe Stiglitz’s presentation of a new paper on theoretical models of evolution of wealth and income inequality. The other two commentators were Duncan Foley and Paul Krugman. Stiglitz’s paper is not, as far as I know, on the Internet yet, so I cannot give the link. (I also had my own slides, but I do not know how to upload them here, so I cannot include the link to them either.)
Stiglitz’s is a long paper (some 60 pages) and is in reality composed of two independent papers. The first one, on which I mostly commented, is a continuation of the discussion started by Piketty’s “Le Capital…”. Stiglitz points out to several very important puzzles that cannot be easily accommodated in the current neoclassical framework: broadly constant rate of return despite massive capital deepening, rising share of capital incomes even if the production function studies tend to find elasticity of substitution between capital and labor of less than 1, and stagnant wages despite the increase in K/Y ratio. The second paper is the extension od Stiglitz’s 1969 paper on the theory of wealth and income inequality whose objective is to model the long-run distributions among households that differ in terms of labor and capital incomes they receive and savings behavior.…Milanovic on Stiglitz on Piketty.
global inequality
Some prefer land: Stiglitz on income and wealth inequality
Branko Milakovic
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