Economic growth: convergence and divergence

Authors

DOI:

https://doi.org/10.15359/eys.24-55.3

Keywords:

Piketty, laws of capitalism, return, wage

Abstract

Piketty’s fundamental laws of capitalism in his book “Capital in the Twenty-First Century” (2014) are analyzed to explore the explanatory power of the inequality between average annual rate of return on capital and the rate of growth of production, as a fundamental force for divergence. The author’s r > g crucial assumption and his conclusions are questioned.  The convergence-divergence phenomenon is rather believed to be an innate phenomenon of the production and distribution processes. This analysis suggests that the core of inequality may not reside in the elasticity-of-resource-composition, influenced by technological advance. Furthermore, this research will try to contribute to a better understanding of the forces influenced by economic growth and income distribution, which could provide a major contribution to the economic sciences.

Author Biography

Daniel Villalobos Céspedes, Universidad Nacional

Economista, politólogo, Catedrático en Universidad de Costa Rica (UCR) y Universidad Nacional (UNA), Costa Rica.

References

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Published

03/13/2019

How to Cite

Economic growth: convergence and divergence. (2019). Economía Y Sociedad, 24(55), 25-52. https://doi.org/10.15359/eys.24-55.3

Issue

Section

Articles (Arbitrated section)

How to Cite

Economic growth: convergence and divergence. (2019). Economía Y Sociedad, 24(55), 25-52. https://doi.org/10.15359/eys.24-55.3

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