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A two-part paper
Part I. Focused on the distinction between wealth and capital, how
the two can evolve differently and implications for personal income
distribution
Part II. Combines a model of long-term wealth and income
distribution among individuals with theory of growth [based on
Stiglitz 1969, which I read as an undergraduate in Yugoslavia around
1975 and never thought I would have a chance to discuss it with the
author]
But here my comments will be on Part I.
() ()
So long as expected appreciation of land + rent/p exceed return on K,
people will invest in land
Increase in p increases wealth inequality (land holders are rich) while
leaving productive potential unchanged.