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Thursday, May 29, 2014

Piketty Responds

Thomas Piketty's response to the FT:

Response to FT: ... I welcome all criticisms and I am very happy that this book contributes to stimulate a global debate about these important issues. My problem with the FT criticisms is twofold. First, I did not find the FT criticism particularly constructive. The FT suggests that I made mistakes and errors in my computations, which is simply wrong, as I show below. The corrections proposed by the FT to my series (and with which I disagree) are for the most part relatively minor, and do not affect the long run evolutions and my overall an alysis , contrarily to what the FT suggests . Next, the FT corrections that are somewhat more important are based upon methodological choices that are quite debatable (to say the least) . In particular, the FT simply chooses to ignore the Saez - Zucman 2014 study, which indicates a higher rise in top wealth shares in the United States during recent decades than what I report in my book (if anything, my book underestimates the rise in wealth inequality). Regarding Britain, the FT seems to put a lot of trust in self - reported wealth survey data that notoriously underestimates wealth inequality. ...

[This is just a snippet -- the full response is 10 pages long.]

    Posted by on Thursday, May 29, 2014 at 11:27 AM in Economics | Permalink  Comments (54)


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