My latest paper in the International Journal of Political Economy (Taylor & Francis) is now up. This link leads to gated access. Amongst other things, I have developed a simple accounting formula to capture synthetic savings within fractiles. The abstract is summarized below:
Personal savings from top incomes and wealth accumulation in the United States: Results from disaggregated national accounts
” This article explores the determinants and distribution of household wealth. Looking at U.S. data since 1980, it finds convincing evidence that top incomes were saved at high rates and contributed to the steady increase in the household wealth–income ratio. First, I rule out counterclaims regarding the role of housing and real estate prices finding little evidence of their influence on the trends and magnitudes of household net worth relative to disposable income. With savings as the remaining explanation, I present an accounting decomposition formula that captures savings rates for any reference group using the dynamics of intergroup accumulation rates. This methodology is applied to data from national accounts, balance sheets, and income distribution statistics in order to compute saving rates for the top 1 percent of households in the U.S. income distribution. The estimates also support the idea that top income earners have outsaved other households, thereby capturing an increasing share of wealth.“
I recently wrote a column on my paper “Capital and the Hindu rate of growth” at Ideas for India. A cross-post was published in Business Standard
Tomorrow (10/25) I will be delivering a talk on wealth concentration in India at the NSSR Macro Lunch at The New School.
Location: Room D1008, 6 E 16th Street, New York from 12:30-2PM
November 3rd, I will be speaking as part of the Inequality Lecture Series at the City University of New York (CUNY) Stone Center/Luxembourg Income Study.
Location: Room 9204, CUNY Graduate Center from 3:30 – 5PM
I have a new paper on top wealth holders in India from 1961-1986 and I recently wrote a blog on this at developingeconomics.org for general audiences