Resumen
We build an overlapping generations model to analyse the evolution of inequality as an economy develops. Our model economy resembles a ‘very capitalist society’. Initially, wealth is exclusively concentrated in a rich dynasty. We ask whether or not this type of capitalist economy contains a fundamental contradiction, as claimed by Piketty in his recent book. We derive a condition under which the economy is driven to a state of perpetual inequality. However, we also show that an economy where capital deepening triggers the development process is very unlikely to be absorbed in that state.
Idioma original | Inglés |
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Páginas (desde-hasta) | 381-399 |
Número de páginas | 19 |
Publicación | Bulletin of Economic Research |
Volumen | 70 |
N.º | 4 |
DOI | |
Estado | Publicada - oct. 2018 |