Piketty's (r-g) Law is Pareto's Law: Consistent Analyses of Income Distribution Predicated on Inconsistent Definitions of Inequality

Research output: Working paperDiscussion paper

1 Downloads (Pure)

Abstract

On the face of it, Pareto’s law and Piketty’s (r – g) law are inconsistent, with Pareto arguing that real per capita economic growth is the solution to the problem of income inequality and Piketty arguing for redistribution to be funded from a wealth tax. This study, however, establishes that when the same definition of inequality is adopted by the two scholars, Piketty’s and Pareto’s laws are the same economic law. It also establishes that Piketty’s assertion that Pareto treats income distribution as “rock stable” overlooks the critical aspects of Pareto’s law that emphasise change.
Original languageEnglish
PublisherUWA Business School
Publication statusPublished - 2018

Publication series

NameEconomics Discussion Papers
No.6
Volume18

Fingerprint Dive into the research topics of 'Piketty's (r-g) Law is Pareto's Law: Consistent Analyses of Income Distribution Predicated on Inconsistent Definitions of Inequality'. Together they form a unique fingerprint.

Cite this