TY - UNPB
T1 - A Model of Piketty Convergence and Divergence
T2 - Unbridled Power and Biased Economic Growth versus Checks and Balances and Neutral Growth
AU - Ozanne, Harrison
AU - Birchenhall, Christopher
PY - 2018
Y1 - 2018
N2 - Ozanne's political economy equilibria framework, which models how power relationships influence economic outcomes and the direction of economic growth, is given a more formal, mathematical treatment. The concepts of biased and neutral technical change are extended to cover Piketty divergence and convergence in utility space and illustrative examples are used to demonstrate the role played by the decisiveness of power with and without growth. Where checks and balances do not exist, the exercise of unbridled power results in divergence, increasing inequality and the amassing of wealth by the rich and powerful; where checks and balances restrict the exercise of power, the result is convergence and more even distribution of the benefits of growth.
AB - Ozanne's political economy equilibria framework, which models how power relationships influence economic outcomes and the direction of economic growth, is given a more formal, mathematical treatment. The concepts of biased and neutral technical change are extended to cover Piketty divergence and convergence in utility space and illustrative examples are used to demonstrate the role played by the decisiveness of power with and without growth. Where checks and balances do not exist, the exercise of unbridled power results in divergence, increasing inequality and the amassing of wealth by the rich and powerful; where checks and balances restrict the exercise of power, the result is convergence and more even distribution of the benefits of growth.
M3 - Working paper
BT - A Model of Piketty Convergence and Divergence
ER -
