Economics Dictionary of ArgumentsHome
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| Method: a method is a procedure agreed on by participants of a discussion or research project. In the case of violations of a method, the comparability of the results is in particular questioned, since these no longer come from a set with uniformly defined properties of the elements._____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Dictionary of Arguments. | |||
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Thomas Piketty on Method - Dictionary of Arguments
Bofinger I 104 Method/Empirical/Data/Piketti/BofingerVsPiketti: The most astonishing experience when reading Piketty's book is on page 472(1), where the reader comes across diagram 10.10 (…). It describes the empirical relationship between r and g for the long period from the birth of Christ to the year 2200. >Piketty hypothesis, >Piketty formula. At first glance, one finds here the empirical evidence for Piketty's fundamental law, according to which r is greater than g. Bofinger I 105 At second glance, one is surprised that for the period from 1913 to 2012, the exact opposite is the case: g is greater than r. Now, when looking at a period of more than two millennia, one could consider a temporary deviation for a period of 100 years as an exception to the rule. But that is not easy when one realizes that not only is the most reliable data available for this phase, but it is also the period that was shaped by modern capitalism. Bofinger I 106 [There has been] little discussion about the fact that the very gloomy assumption of a gradual abolition of all capital gains taxes is not insignificant for the forecast of r > g in the 21st century.(2) It is also astonishing that no one seems to be bothered by the fact that the data for the real return on capital, which are presented as "worldwide" in Piketty's graphs, obviously only come from France for the period from 1700 to 2012.(3) 1. Piketty, T. 2014. Das Kapital im 21. Jahrhundert. München: Beck. 2. Piketty deducts a tax rate of 30 percent from the pre-tax return in the period from 1913 to 2012. In the period from 2012 to 2050, he assumes a tax rate of 10 percent, which is reduced to 0 percent from 2050. If one assumes that international tax competition does not lead to a reduction in capital gains tax in the future, g > r would still apply until 2050 according to Piketty's data. 3. Table TS6.2 of the Data Appendix contains the data basis for the development of the return on capital in France, which Piketty then aggregates over long periods of time for Table TS10.3 and the associated graphics 10.9 to 10.11 and calls it the "global return on capital." If capital gains taxes and depreciation are deducted from the disaggregated data, as Piketty does to calculate the return on capital shown above, r can be calculated for the individual ten-year periods since 1820. If this is compared with the growth rate of national income in France, r > g applies from the 1980s onwards. However, if one compares the return on capital with the global growth rate from Table TS2.4, as Piketty does, r > g only seems to have applied in the 1990s, while the relationship has reversed again thereafter. Some basics for Piketty: >Cambridge Capital Controversy, >Geoffrey C. Harcourt, >Capital reversing, >Capital/Joan Robinson, >Exploitation/Robinson, >Reswitching/Robinson, >Reswitching/Sraffa, >Reswitching/Economic Theories, >Neo-Keynesianism, >Neo-Neoclassical Theories. Peter Bofinger und Philipp Scheuermeyer. 2015.“Das „Kapital“ im 21. Jahrhundert“.In: Thomas Piketty und die Verteilungsfrage. Ed. Peter Bofinger, Gustav A. Horn, Kai D. Schmid und Till van Treeck. 2015._____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. Translations: Dictionary of Arguments The note [Concept/Author], [Author1]Vs[Author2] or [Author]Vs[term] resp. "problem:"/"solution:", "old:"/"new:" and "thesis:" is an addition from the Dictionary of Arguments. "Vs" indicates differences in content, not necessarily the chronological progression of a controversy. If a German edition is specified, the page numbers refer to this edition. |
Piketty I Thomas Piketty Capital in the Twenty First Century Cambridge, MA 2014 Piketty II Thomas Piketty Capital and Ideology Cambridge, MA 2020 Piketty III Thomas Piketty The Economics of Inequality Cambridge, MA 2015 Bofinger II Peter Bofinger Monetary Policy: Goals, Institutions, Strategies, and Instruments Oxford 2001 |
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