Quotation Rehm, Miriam, Schnetzer, Matthias. 2015. Property and Power: Lessons from Piketty and new insights from the HFCS. European Journal of Economics and Economic Policies 12 (2): S. 204-219.


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Abstract

This paper argues that the cumulative causation processes between wealth and power risk leading to an escalation of wealth inequality. Piketty's historical description of this development from administrative data for individual countries is corroborated with new survey data for the eurozone, the Household Finance and Consumption Survey (HFCS). Wealth is extremely unequally distributed in the eurozone – much more so than income. Furthermore, we provide a multi-faceted picture of wealth distribution in Europe using the socio-economic characteristics available in the HFCS, and we show that inheritances are the single most important factor for wealth inequality. The structural power to shape economic and political institutions is thus ever more concentrated. Finally, we discuss three channels through which the unequal distribution of private assets may affect power relations and economic activity.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal INTERVENTION. European Journal of Economics and Economic Policies
Language English
Title Property and Power: Lessons from Piketty and new insights from the HFCS
Volume 12
Number 2
Year 2015
Page from 204
Page to 219
Reviewed? Y
URL http://www.elgaronline.com/abstract/journals/ejeep/12-2/ejeep.2015.02.06.xml
DOI http://dx.doi.org/10.4337/ejeep.2015.02.06

Associations

People
Schnetzer, Matthias (Details)
External
Rehm, Miriam (AK Wien, Austria)
Organization
Institute for Macroeconomics IN (Details)
Research areas (Ă–STAT Classification 'Statistik Austria')
5300 Economics (Details)
5323 Econometrics (Details)
5341 Economic policy (Details)
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