Note: I want you all to be highly critical of my posts on factor shares – and where you can throw literature at me. I wrote a bunch of posts in a single day based on one book (and some prior knowledge), I have no appeal to authority here and would love to have your ideas thrown in there 🙂
As I have pointed out in the past factor shares are not an area of special interest for me, even though I’m spending a bit of time looking into the income distribution field. This field is the child of Ricardo and his functional distribution of income over factors of production, my interest lies more in the field started by Pareto which involves starting from individual household units – these “macro” and “micro” fields inform each other but I had hoped not to go too far down the “rabbit hole” of what is essentially a different discipline.
However, (I’m assuming) the Piketty book is about factor shares, and as a result anyone talking about income distribution needs to at least be able to answer questions on this – hence why I’ve been doing some reading.
As a sidenote, this isn’t completely new stuff for me – given that factor share work is a large part of both macro and international economics, and given that as an employee I have spent a bit of time with GDP and household earning data. So if I skip over ideas a bit quickly my apologies, these are sort of just reading notes I’ve written for myself that I hope you will also enjoy 🙂 Read more