Chapter 6 -- Quiz -- General

Thomas Piketty, Capital in the 21st Century (Harvard University Press 2014)

Patrick Toche

Question 1

Use Piketty's 'First Fundamental Law of Capitalism' to discuss the historical evolution of the capital income share.

Question 2

Clarify the role of the elasticity of substitution between capital and labor in shaping the distribution of income between capital and labor. What range of values of the elasticity do recent empirical studies find?