Is Thomas Piketty Revising His Theory About Inequality?

In a forthcoming article in the American Economic Review, Thomas Piketty - author of Capital in the Twenty-First Century - is qualifying some of his arguments. According to his most recent article the problem of inequality cannot be reduced to his formula of r>g. This formulation implies that returns on capital (r) are having a higher growth rate than the overall economy (g), thereby increasing economic inequality over time. In his new publication Piketty gives more room to political developments, the role of institutions, and the complexity of economic development as major factors in emergence of inequality. A short summary of his arguments can be found here, but the entire journal article is a recommended read.