Skip to main content

Piketty's Capital

I have been a fan of Thomas Piketty's work for nearly a decade, particularly his work on wealth concentration in France over the long run (click here). Indeed, his papers on wealth concentration inspired me to write an article on wealth inequailty in Ireland over the long run using probate data.

The publication of Capital in the Twenty-First Century, his 685-page book, has turned him into a 'rock-star economist', with sales of his book propelling it to the top of the best-seller lists. His book is controversial. Using long-run data on wealth, he argues that Western societies are returning to their unequal past, where wealth and income is concentrated in the hands of the few. However, it is his explanation for these events as well as his radical policy prescriptions, such as international wealth taxes, which caused the most controversy. 

The review of Capital by Robert Shiller is here and Evan Davis has a nice piece at the Spectator, comparing Piketty with McCloskey (see short video below).


Popular posts from this blog

Bitcoin Bubble?

According to Robert Shiller , speaking at Davos, Bitcoin is a perfect example of a bubble - story here . Shiller sees Bitcoin as a backwards step in the evolution of money.   George Selgin , a free banker, takes an opposing view - click here .  Although he doesn't believe that Bitcoin is money, he sees its development as a fascinating turn in the evolution of money. In particular, he lauds the fact that Bitcoin production is constrained and cannot be infinite. There is a short video below where Bitcoin explain how it works.

How Valuable Are Connections?

Daron Acemoglu, Simon Johnson, Amir Kermani, James Kwak and Todd Mitton have written a paper on whether firms connected to Timothy Geithner benefited from these connections. They do so by looking at how stocks of these firms reacted to the announcement that he was a nominee for Treasury Secretary in November 2008. They find that there were large abnormal returns for connected firms. Below is the paper's abstract and the full paper is available here . The announcement of Timothy Geithner as nominee for Treasury Secretary in November 2008 produced a cumulative abnormal return for financial firms with which he had a connection. This return was about 6% after the first full day of trading and about 12% after ten trading days. There were subsequently abnormal negative returns for connected firms when news broke that Geithner's confirmation might be derailed by tax issues. Excess returns for connected firms may reflect the perceived impact of relying on the advice of a small ne

Boom and Bust: A Global History of Financial Bubbles

Boom and Bust: A Global History of Financial Bubbles, co-authored with my colleague Will Quinn , is forthcoming in August. It is published by Cambridge University Press and is available for pre-order at Amazon , Barnes and Noble , Waterstones and Cambridge University Press .