Please enter verification code
Confirm
A Review on ‘Capital in the 21th Century’
Psychology and Behavioral Sciences
Volume 3, Issue 6, December 2014, Pages: 207-211
Received: Nov. 16, 2014; Accepted: Dec. 4, 2014; Published: Dec. 16, 2014
Views 2880      Downloads 213
Author
Bodo Herzog, Department of Economics, Reutlingen, Germany; ESB Business School, Reutlingen University, Reutlingen, Germany; RRI Reutlingen Research Institute, Reutlingen, Germany
Article Tools
Follow on us
Abstract
This paper is a brief review on the book ‘Capital in the Twenty-First Century’ by the French scholar Thomas Piketty. The book has started a new debate about inequality and capital taxation in Europe. It provides interesting empirical facts and develops a theory of the functioning of capitalist economies. However, I personally think the book is less convincing than recognized in the public debate. The demonstrated theory of economic growth in the book is elusive and lacks a psychological and behavioral underpinning. In fact, I do think that the increasing inequality and economic divergence are caused by capitalism but the psychological and behavioral aspects of humans are of similar or greater significance. Therefore, Piketty’s argument does not stimulate an open and scientifically founded debate in all aspects.
Keywords
Inequality, Poverty, Behavioral Economics, Capital Taxation, Eurozone Crisis
To cite this article
Bodo Herzog, A Review on ‘Capital in the 21th Century’, Psychology and Behavioral Sciences. Vol. 3, No. 6, 2014, pp. 207-211. doi: 10.11648/j.pbs.20140306.15
References
[1]
TIME Magazine, Here’s Why This Best-Selling Book Is Freaking Out the Super-Wealthy, 23. April 2014.
[2]
Milanovic, B., The Return of ‘Patrimonial Capitalism’: A Review of Thomas Piketty’s Capital in the Twenty-First Century, Journal of Economic Literature, Vol. 52, No. 2, 519-34, 2014.
[3]
Piketty, T., Capital In The Twenty-First Century, Harvard University Press, 2014.
[4]
De Grauwe, P., Lecture on Behavioral Macroeconomics, Princeton University Press, 2012.
[5]
Krugman, P., Geography and Trade, MIT Press, 1993
[6]
Krugman, P., What’s New About The New Economic Geography?, Oxford Review of Economic Policy, Vol. 14, No. 2, p. 7-17, 1998.
[7]
Anderson, D., Barkbu, B., Lusinyan, L., Muir, D., Assessing the Gains from Structural Reforms for Jobs and Growth, Chapter 7, IMF Report on Jobs and Growth: Supporting the European Recovery, 2014.
[8]
Nordhaus, W.D., The Political Business Cycle, Review of Economic Studies, p. 169-190, 1975.
[9]
Shi, M. and Svensson, J., Political Budget Cycles: Do They Differ Across Countries and Why?, Journal of Public Economics, vol. 90, pp. 1367-1389, 2006.
[10]
German Council of Economic Experts, More Confidence in Market Processes, Chapter 6: The German Current Account – Actionism Is Inappropriate, annual report, 2014.
[11]
Kahneman, D. and Tversky, A., Judgment under Uncertainty: Heuristics and Biases, Science, Vol. 185, No. 4157, p. 1124-1131, 1974.
[12]
European Central Bank, The Eurosystem Household Finance and Consumption Survey, Statistics Paper Series 2, April, 2013.
[13]
Kalckreuth U., T. Schmidt, M. Eisele, J. Le Blancc, J. Zhu, The PHF: a comprehensive panel survey on household finances and wealth in Germany, Discussion Paper 13/2012, Deutsche Bundesbank, 2012.
[14]
Eggertsson, G. Ferrero, A. and Raffo, A., Can structural reforms help Europe?, Journal of Monetary Economics, Vol. 61, p. 2-22, 2014.
ADDRESS
Science Publishing Group
1 Rockefeller Plaza,
10th and 11th Floors,
New York, NY 10020
U.S.A.
Tel: (001)347-983-5186