Income Inequality, Asset Returns, and the Capital Share in Australia. We aim to show that income inequality measured by income shares is currently mis-measured due to omission of several important sou

Description

Income Inequality, Asset Returns, and the Capital Share in Australia. We aim to show that income inequality measured by income shares is currently mis-measured due to omission of several important sources of capital income, such as depreciation allowances, imputed rent, and capital gains. To address this, the project aims to develop an analytical framework equipped to construct corrected measures of income shares that include the omitted capital income and cover a much longer period than previous inequality measures for Australia, the US, UK, Germany, and Scandinavia. We expect that inequality has followed a trajectory that is quite different from conventional measures of the functional income distribution. This has implications for several strands of macroeconomic analysis and economic policy. . Scheme: Discovery Projects. Field: 3801 - Applied Economics. Lead: Prof Jakob Madsen