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THE FUNDAMENTAL CONTRADICTION OF CAPITALISM REVISITED.
- Source :
- Bulletin of Economic Research; Oct2018, Vol. 70 Issue 4, p381-399, 19p, 4 Graphs
- Publication Year :
- 2018
-
Abstract
- 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. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 03073378
- Volume :
- 70
- Issue :
- 4
- Database :
- Complementary Index
- Journal :
- Bulletin of Economic Research
- Publication Type :
- Academic Journal
- Accession number :
- 132270322
- Full Text :
- https://doi.org/10.1111/boer.12147