Research Fellow Randall Holcombe: Capital does not just exist and - TopicsExpress

Research Fellow Randall Holcombe: Capital does not just exist and produce a rate of return. It has to be employed productively, which Piketty acknowledges in his words, but not in the empirical framework he uses to draw his conclusions. Therein lies the most fundamental problem with his analysis. His framework misrepresents the nature of capital, how it is valued, and how owners of capital earn their returns.

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