Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments January 25, 2023 erstellt
Description:
We present a Gordon-growth-model-based formula for wealth-income ratios. The Gordon formula shows negative (positive) correlation between wealth-income ratios and saving (growth) rates, contrary to conventional understanding of the relationship. The Gordon formula also shows an important role of labor share in determination of wealth-income ratios. We quantify contribution of labor share and other components to cross-country variation in wealth-income ratios