Piketty in the light of Pasinetti and Foley: Income distribution, economic growth and financial fragility
Autor(a) principal: | |
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Data de Publicação: | 2016 |
Outros Autores: | |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Revista de Economia Política |
Texto Completo: | http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572016000400667 |
Resumo: | ABSTRACT The paper discusses the hypothesis that the functional distribution of income is not necessary stable along the growth path of a capitalist economy. We reviewed Pasinetti and Foley models showing that if we use the traditional definition of capital, i.e., capital as the value of productive resources (i) r > g is a necessary condition for the existence of balanced growth, and it will not lead to an explosive process of income concentration and (ii) r > i is a necessary condition for a financially robust growth path. Thus we conclude that from a post-Keynesian perspective, Piketty's argument that the root of the increase of inequality in capitalism is that the capital return rate is higher than the growth rate of the economy is wrong. |
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Piketty in the light of Pasinetti and Foley: Income distribution, economic growth and financial fragilityeconomic growthCapitalIncome distributionPost-keynesian economicsThomas PikettyABSTRACT The paper discusses the hypothesis that the functional distribution of income is not necessary stable along the growth path of a capitalist economy. We reviewed Pasinetti and Foley models showing that if we use the traditional definition of capital, i.e., capital as the value of productive resources (i) r > g is a necessary condition for the existence of balanced growth, and it will not lead to an explosive process of income concentration and (ii) r > i is a necessary condition for a financially robust growth path. Thus we conclude that from a post-Keynesian perspective, Piketty's argument that the root of the increase of inequality in capitalism is that the capital return rate is higher than the growth rate of the economy is wrong.Centro de Economia Política2016-12-01info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersiontext/htmlhttp://old.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572016000400667Brazilian Journal of Political Economy v.36 n.4 2016reponame:Revista de Economia Políticainstname:EDITORA 34instacron:EDITORA_3410.1590/0101-31572015v36n04a01info:eu-repo/semantics/openAccessDÁVILA-FERNÁNDEZ,MARWIL J.OREIRO,JOSÉ LUISeng2016-12-15T00:00:00Zoai:scielo:S0101-31572016000400667Revistahttps://centrodeeconomiapolitica.org.br/repojs/index.php/journalONGhttps://centrodeeconomiapolitica.org.br/repojs/index.php/journal/oai||cecilia.heise@bjpe.org.br1809-45380101-3157opendoar:2016-12-15T00:00Revista de Economia Política - EDITORA 34false |
dc.title.none.fl_str_mv |
Piketty in the light of Pasinetti and Foley: Income distribution, economic growth and financial fragility |
title |
Piketty in the light of Pasinetti and Foley: Income distribution, economic growth and financial fragility |
spellingShingle |
Piketty in the light of Pasinetti and Foley: Income distribution, economic growth and financial fragility DÁVILA-FERNÁNDEZ,MARWIL J. economic growth Capital Income distribution Post-keynesian economics Thomas Piketty |
title_short |
Piketty in the light of Pasinetti and Foley: Income distribution, economic growth and financial fragility |
title_full |
Piketty in the light of Pasinetti and Foley: Income distribution, economic growth and financial fragility |
title_fullStr |
Piketty in the light of Pasinetti and Foley: Income distribution, economic growth and financial fragility |
title_full_unstemmed |
Piketty in the light of Pasinetti and Foley: Income distribution, economic growth and financial fragility |
title_sort |
Piketty in the light of Pasinetti and Foley: Income distribution, economic growth and financial fragility |
author |
DÁVILA-FERNÁNDEZ,MARWIL J. |
author_facet |
DÁVILA-FERNÁNDEZ,MARWIL J. OREIRO,JOSÉ LUIS |
author_role |
author |
author2 |
OREIRO,JOSÉ LUIS |
author2_role |
author |
dc.contributor.author.fl_str_mv |
DÁVILA-FERNÁNDEZ,MARWIL J. OREIRO,JOSÉ LUIS |
dc.subject.por.fl_str_mv |
economic growth Capital Income distribution Post-keynesian economics Thomas Piketty |
topic |
economic growth Capital Income distribution Post-keynesian economics Thomas Piketty |
description |
ABSTRACT The paper discusses the hypothesis that the functional distribution of income is not necessary stable along the growth path of a capitalist economy. We reviewed Pasinetti and Foley models showing that if we use the traditional definition of capital, i.e., capital as the value of productive resources (i) r > g is a necessary condition for the existence of balanced growth, and it will not lead to an explosive process of income concentration and (ii) r > i is a necessary condition for a financially robust growth path. Thus we conclude that from a post-Keynesian perspective, Piketty's argument that the root of the increase of inequality in capitalism is that the capital return rate is higher than the growth rate of the economy is wrong. |
publishDate |
2016 |
dc.date.none.fl_str_mv |
2016-12-01 |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572016000400667 |
url |
http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572016000400667 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
10.1590/0101-31572015v36n04a01 |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
text/html |
dc.publisher.none.fl_str_mv |
Centro de Economia Política |
publisher.none.fl_str_mv |
Centro de Economia Política |
dc.source.none.fl_str_mv |
Brazilian Journal of Political Economy v.36 n.4 2016 reponame:Revista de Economia Política instname:EDITORA 34 instacron:EDITORA_34 |
instname_str |
EDITORA 34 |
instacron_str |
EDITORA_34 |
institution |
EDITORA_34 |
reponame_str |
Revista de Economia Política |
collection |
Revista de Economia Política |
repository.name.fl_str_mv |
Revista de Economia Política - EDITORA 34 |
repository.mail.fl_str_mv |
||cecilia.heise@bjpe.org.br |
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1754122481796382720 |