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Wealth, Capital and the Theory of Distribution: Some Implications for Piketty’s Analysis.

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Bibliographic Details
Title: Wealth, Capital and the Theory of Distribution: Some Implications for Piketty’s Analysis.
Authors: Stirati, Antonella
Source: Review of Political Economy; Jan2017, Vol. 29 Issue 1, p47-63, 17p
Subject Terms: LITERARY criticism, ECONOMICS literature, INCOME inequality, CAPITAL
Reviews & Products: CAPITAL in the 21st Century (Book : Piketty)
People: PIKETTY, Thomas, 1971-
Abstract: Thomas Piketty’sCapital in the Twenty-First Century (2014)has been spectacularly successful. One reason for this is that while it often challenges received views and supports a non-apologetic interpretation of capitalism, at the same time it relies on mainstream economics. This theoretical framework, however, is not always conducive to consistency and interpretative accuracy. This paper points out some of the book’s analytical weaknesses and shows that some empirical evidence, a clearer distinction between wealth and capital, and a different theoretical perspective, could lead to questioning some of the book’s claims. In particular, it argues that the increase in the wealth-to-output ratio (but not the capital-to-output ratio) cannot explain the observed changes in income shares. It also contends that non-mainstream perspectives on income distribution and growth suggest that changes in income distribution are due more to policy and power relations than to the factors Piketty identifies. [ABSTRACT FROM PUBLISHER]
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Database: Complementary Index
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Abstract:Thomas Piketty’sCapital in the Twenty-First Century (2014)has been spectacularly successful. One reason for this is that while it often challenges received views and supports a non-apologetic interpretation of capitalism, at the same time it relies on mainstream economics. This theoretical framework, however, is not always conducive to consistency and interpretative accuracy. This paper points out some of the book’s analytical weaknesses and shows that some empirical evidence, a clearer distinction between wealth and capital, and a different theoretical perspective, could lead to questioning some of the book’s claims. In particular, it argues that the increase in the wealth-to-output ratio (but not the capital-to-output ratio) cannot explain the observed changes in income shares. It also contends that non-mainstream perspectives on income distribution and growth suggest that changes in income distribution are due more to policy and power relations than to the factors Piketty identifies. [ABSTRACT FROM PUBLISHER]
ISSN:09538259
DOI:10.1080/09538259.2016.1237819