We present a Gordon-growth-model-based formula for wealth-income ratios. Relative to the conventional formula popularized by Piketty and Zucman, the Gordon formula shows how the price and volume of wealth interact with each other. We highlight and confirm two implications of the Gordon formula...

We present a Gordon-growth-model-based formula for wealth-income ratios. The Gordon formula shows negative (positive) correlation between wealth-income ratios and saving (growth) rates, contrary to conventional understanding of the relationship. The Gordon formula also shows an important role of...