A Derivation of Piketty’s Second Fundamental Law of Capitalism

Several people have asked me for a more mathematically precise formulation of Thomas Piketty’s Second Fundamental Law of Capitalism, as well as a more careful statement of its proof and of the boundary conditions over which the proof applies, with some attention to the unusual and exceptional cases. I have written up some notes that are an attempt to comply with those requests. While I have attempted to be as precise as possible in laying out the proof, I have tried to avoid introducing any more rigor than is absolutely necessary for an informed reader to understand how the proof goes through. I have assumed a familiarity with reasoning about limits at the level of elementary calculus.

The notes can be downloaded here.

3 thoughts on “A Derivation of Piketty’s Second Fundamental Law of Capitalism

  1. Pingback: Cooper on r > g and the Return to Capital | Rugged Egalitarianism

  2. Pingback: Cooper on r > g and the Return to Capital | Samma Vaca

  3. Pingback: My Piketty Series Resurfaces | Samma Vaca

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