Capital is Back: Wealth-Income Ratios in Rich Countries 1700–2010 - HAL-SHS - Sciences de l'Homme et de la Société Accéder directement au contenu
Article Dans Une Revue Quarterly Journal of Economics Année : 2014

Capital is Back: Wealth-Income Ratios in Rich Countries 1700–2010

Résumé

How do aggregate wealth-to-income ratios evolve in the long run and why? We address this question using 1970–2010 national balance sheets recently compiled in the top eight developed economies. For the United States, United Kingdom, Germany, and France, we are able to extend our analysis as far back as 1700. We find in every country a gradual rise` of wealth-income ratios in recent decades, from about 200–300% in 1970 to 400–600% in 2010. In effect, today’s ratios appear to be returning to the high values observed in Europe in the eighteenth and nineteenth centuries (600–700%). This can be explained by a long-run asset price recovery (itself driven by changes in capital policies since the world wars) and by the slowdown of productivity and population growth, in line with the β=sg Harrod-Domar-Solow formula. That is, for a given net saving rate s = 10%, the long-run wealth-income ratio β is about 300% if g = 3% and 600% if g = 1.5%. Our results have implications for capital taxation and regulation and shed new light on the changing nature of wealth, the shape of the production function, and the rise of capital shares.

Dates et versions

halshs-01109372 , version 1 (26-01-2015)

Identifiants

Citer

Thomas Piketty, Gabriel Zucman. Capital is Back: Wealth-Income Ratios in Rich Countries 1700–2010. Quarterly Journal of Economics, 2014, 129 (3), pp.1255-1310. ⟨10.1093/qje/qju018⟩. ⟨halshs-01109372⟩
394 Consultations
0 Téléchargements

Altmetric

Partager

Gmail Facebook X LinkedIn More