Abstract
We present a Gordon-growth-model-based formula for wealth-income ratios and empirically examine its implications on long-run cross-country differences in wealth-income ratios. Firstly, we find that wealth-income ratios have a negative cross-country correlation with saving rates, contrary to the conventional understanding of the relationship as posited by Piketty and Zucman (2014). Secondly, we find that the labor share of income contributes significantly to cross-country variation in wealth-income ratios.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
