Economic Size and Debt Sustainability against Piketty's Capital Inequality

Hyejin Cho (1)

1 CES - Centre d'économie de la Sorbonne

This article presents a methodology designed to facilitate alternative variables measuring economic growth. A capital-labor split of Cobb-Douglas function is adapted for use in the context of economic growth. A capital/income ratio and two fundamental law of capitalism originated by Thomas Piketty illustrate capital inequality undervalued than labor inequality. In addition, the article includes export and external debt as strong alternatives. Empirical data of the World Bank are analyzed to demonstrate broad differences in economic sizes. The case analysis on Latin America as an example of different sized economy is also discussed.

Mots clés: Capital-labor split; factors of production; capital/income ratio; Thomas Piketty; Capitalism; Economic size; Debt sustainability; Latin America; Import substitution industrialization (ISI) model; Insolvent external debt; Openness; External debt to exports ratio

Domaines: Economies et finances

Hyejin Cho. Economic Size and Debt Sustainability against Piketty's Capital Inequality. 2014. ⟨hal-01009465v1⟩