On the Formation of Capital and Wealth: IT, Monopoly Power and Rising Inequality

  title={On the Formation of Capital and Wealth: IT, Monopoly Power and Rising Inequality},
  author={Mordecai Kurz},
  journal={Information Systems \& Economics eJournal},
  • Mordecai Kurz
  • Published 25 June 2017
  • Economics
  • Information Systems & Economics eJournal
Our underlying hypothesis is that technological progress (even neutral) has a big effect on distribution, not only on growth, since rising waves of technical progress cause rising monopoly power. We test it by showing that, since the 1970's, information technology (in short IT) has caused rising monopoly power, which explains rising inequality, slow growth of wages and low level of investment since the 1970's. This monopoly power is legally protected by patent laws, intellectual property rights… Expand
Kaldor and Piketty’s facts: The rise of monopoly power in the United States
Abstract The macroeconomic data of the last fifty years have overturned at least two of Kaldor’s famous stylized growth facts: constant interest rates, and a constant labor share. At the same time,Expand
Competition and monopoly in the U.S. economy: What do the industrial concentration data show?
A recent series of academic studies, think-tank reports, and news articles shows widespread attention to rising industrial concentration and market power in the U.S. economy. In this paper, we focusExpand
The state of the study of the market in political economy: China’s rise shines light on conceptual shortcomings
The minimalist, atomistic classical liberal definition of markets is dominant in the global political economy literature, if often implicitly so. But major shifts are occurring in the 21st century,Expand
Labor's Share, the Firm's Market Power, and Total Factor Productivity
We investigate the relationship between labor's share, firm's market power, and the elasticity of output with respect to labor input using an approach based on an unobserved components model. TheExpand
Market Power and Marketisation: Japan and China's Impact on the Iron Ore Market, 50 Years Apart
ABSTRACT How can we explain the marketisation of the iron ore market following the emergence of China, whereas the same market had seen change in the opposite direction following the emergence ofExpand
Controlling monopoly power in a double‐auction market experiment
There is robust evidence in the experimental economics literature showing that monopoly power is affected by trading institutions. In this paper we study whether trading institutions themselves canExpand
The Financialization of the Non‐Financial Corporation. A Critique to the Financial Turn of Accumulation Hypothesis
One aspect in which non‐financial corporations (NFCs) are said to be financialized is that they have been increasingly engaged in financial accumulation from which they derive a growing proportion ofExpand
Asset bubbles in explaining top income shares
This paper considers the role of asset price bubbles (crashes) as an important determinant in seeking a further explanation for top income shares. The asset price bubbles caused at least in part byExpand
Asymmetric Power of the Core: Technological Cooperation and Technological Competition in the Transnational Innovation Networks of Big Pharma
  • Cecilia Rikap
  • Business
  • Review of International Political Economy
  • 2019
Abstract This article theoretically and empirically analyzes leader corporations’ innovation processes in contemporary capitalism. We highlight three characteristics: their transnational scope, theExpand
Stay Competitive in the Digital Age: The Future of Banks
The latest advancement in financial technology has posed unprecedented challenges for incumbent banks. This paper analyzes the implications of these challenges on bank competitveness, and exploresExpand


The Information Technology Revolution and the Stock Market: Evidence
Since 1968, the ratio of stock market capitalization to GDP has varied by a factor of 5. In 1972, the ratio stood at above unity, but by 1974, it had fallen to 0.45 where it stayed for the nextExpand
Wealth Inequality in the United States Since 1913: Evidence from Capitalized Income Tax Data
This paper combines income tax returns with macroeconomic household balance sheets to estimate the distribution of wealth in the United States since 1913. We estimate wealth by capitalizing theExpand
Tobin's q, Unionization, and the Concentration-Profits Relationship
This article uses Tobin's q, the ratio of the market value of a firm to the replacement value of its physical assets, to measure monopoly power and to examine the relationship between marketExpand
Investmentless Growth: An Empirical Investigation
ABSTRACT:We analyze private fixed investment in the United States during the past 30 years. We show that investment is weak relative to measures of profitability and valuation—particularly Tobin'sExpand
Profits , Redistribution of Income and Dynamic Efficiency
The issue of dynamic efficiency is central to the analysis of household savings, firm investment, and government debt. However, previous tests for dynamic efficiency do not account for the increaseExpand
The Theory of Economic Development: An Inquiry into Profits, Capital, Credit, Interest, and the Business Cycle
Schumpeter first reviews the basic economic concepts that describe the recurring economic processes of a commercially organized state in which private property, division of labor, and freeExpand
Income Inequality in the United States, 1913–1998
This paper presents new homogeneous series on top shares of income and wages from 1913 to 1998 in the United States using individual tax returns data. Top income and wages shares display a U-shapedExpand
Capital-skill complementarity and inequality: a macroeconomic analysis
The notion of skilled-biased technological change is often held responsible for the recent behavior of the U.S. skill premium, or the ratio between the wages of skilled and unskilled labor. ThisExpand
Public Finance in Models of Economic Growth
The recent literature on endogenous economic growth allows for effects of fiscal policy on long-term growth. If the social rate of return on investment exceeds the private return, then tax policiesExpand
The Fall of the Labor Share and the Rise of Superstar Firms
The fall of labor's share of GDP in the United States and many other countries in recent decades is well documented but its causes remain uncertain. Existing empirical assessments of trends inExpand