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Afternoon Must-Read: Nick Bunker: Piketty, Rognlie, Karabarbounis nad Neiman, and the Elasticity of Substitution | LARS P. SYLL

Nick Bunker: Piketty and the Elasticity of Substitution: “A particularly technical and effective critique of Piketty is from Matt Rognlie….

…Loukas Karabarbounis and Brent Neiman… show that the gross labor share and the net labor share move in the same direction when the shift is caused by a technological shock… point out that the gross and net elasticities are on the same side of 1…. Rognlie’s point about these two elasticities being lower than 1 doesn’t hold up if capital is gaining due to a new technology that makes capital cheaper…

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Afternoon Must-Read: Nick Bunker: Piketty, Rognlie, Karabarbounis nad Neiman, and the Elasticity of Substitution | LARS P. SYLL

October 25, 2014

October 25, 2014

U.S. economic mobility trends and outcomes

U.S. income and wealth inequality are no longer increasing, but a return to the equitable levels of the mid-20th century isn’t likely anytime soon