Thomas Piketty, depreciation and the elasticity of substitution

When “Capital in the 21st Century” was published in English earlier this year, Thomas Piketty’s book was met with rapt attention and constant conversation. The book was lauded but also faced criticism, particularly from other economists who wanted to fit Piketty’s work into the models they knew well (Equitable Growth’s Marshall Steinbaum replied to many of those criticism here.) Now, a new working paper by the National Bureau of Economic Research shows how one of the more effective critiques of the book might not be as powerful as once thought.

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