inequality, and higher productivity growth through automation. In this paper we critically re-assess these predictions by (i … in endogenous growth theory, but modified to allow for demand-side constraints. This is a novel approach, given that … growth and productivity is stagnating and inequality is rising. Our paper provides a theoretical explanation of this in the …

phenomenon of rising inequality and social harm over the course of a recession. As asset redistribution is predominantly a … privilege of the rich, an increase in inequality encourages more income redistribution, thus further exacerbating recessions …

We scrutinize Thomas Piketty's (2014) theory concerning the relationship between an economy's long-run growth rate, its … of Piketty's Second Fundamental Law of Capitalism does not hold. In line with Piketty's theory a smaller long-run growth …, both the economy's savings rate and its growth rate are endogenous variables whereas in Piketty's theory they are both …

wealth inequality. Using estimates of the earnings processes for each group to calibrate the model, we find wealth inequality … within and between the groups that is consistent with the data. Moreover, the predictions for overall wealth inequality are … heterogeneity generates a between-group pecuniary externality which in turn leads to the predicted differences in wealth inequality …

We scrutinize Thomas Piketty's (2014) theory concerning the relationship between an economy's long-run growth rate, its … of Piketty's Second Fundamental Law of Capitalism does not hold. In line with Piketty's theory a smaller long-run growth …, both the economy's savings rate and its growth rate are endogenous variables whereas in Piketty's theory they are both …

This paper provides a critical review of the recent literature on inequality and growth. After discussing historical … and more recent distributional trends as well as empirical evidence on the relationship between inequality and growth, I … focus on recent explanations of the inequality-growth puzzle. I consider both the impact of the functional and the personal …

-income ratio. In Capital in the XXI Century, Thomas Piketty's argument is that the r > g inequality determines an increase in the … Classical-Marxian theory of induced technical change. In a simple model of ‘capitalists' and ‘workers,' we show that …