Piketty’s (2014) book Capital and associated articles contains a lot of fascinating stuff and has inspired a lot of interesting debate. Here are some summary notes. Please comment on errors. If you want to change the world, you need to know how it works.
The critique: Data and theory don’t support the r > g story, Piketty’s 2nd law, that low growth and high returns on capital will make K/Y increase in the future.
- Net savings rate does not seem to be stable in the long run and does not seem to correlate negatively with growth.
- Adjusted for valuation, K/Y doesn’t seem to have increased in the last decades, contrary to some of Piketty’s main findings.
- Piketty means that the elasticity of substitution between K and L () is above 1, based on, among other things, data on K/Y. But if K/Y hasn’t increased, Piketty might also be wrong about . A lot of earlier empirical analysis indicates < 1. Also, for Piketty’s theory to hold, might need to be much higher than Piketty suggests.
Continue reading “Notes on Piketty, capital and labor, theory and data”
Timo Boppart and Per Krussell (BK) did a really interesting paper last year on the past and future of work hours. More people should read it and I want to understand it, so here is some simple summary notes.
Continue reading “Will Homo Economicus work less in the future?”
Modern Monetary Theory (MMT)/Neo-Chartalism has gained increasing attention last couple of years, i.e. in Bloomberg, and also a lot of interesting critique. Here’s some notes and links.
Continue reading “Notes on the money thinking debate: MMT and the Keynesians”
Here are two presentations from 2013 with Laurance Ball and Engelbert Stockhammer on unemployment. An introduction & illustration of some theoretical differences. Ball argues from a New Keynesian view that hysteresis may cause a long run increase in unemployment, and stresses the importance of monetary policy (more text here and here). Stockhammer argues that a long run NAIRU is probably a bad explanation for the development of unemployment in the OECD countries, based on a Post Keynesian view, instead focusing on capital accumulation (more text here and here).
Continue reading “Two Keynesians”
Basic steps (1) fixed adress to data, (2) use the .copy command in Stata, (3) and if needed use .shell to unzip data. Here is an old post from Asjad Naqvi on how to download from Eurostat (bulk info page here with fix web adresses), that got me started. You may also use .xteurostat.
Continue reading “Get online data directly through Stata”