New Faculty Publication by Prof. Jeffrey Nilsen

March 28, 2024
New Faculty Publication by Prof. Jeffrey Nilsen

In a series of posts Panitza library will share the University research. The aim of these series is to highlight the accomplishments of AUBG faculty and make their works more visible.

Panitza Library is pleased to announce a new publication by Prof. Jeffrey Nilsen:

Kim, D., & Nilsen, J. (2023). A Gordon growth formula for wealth-income ratios and its implications on cross-country differences. Finance Research Letters, 58(D). https://doi.org/10.1016/j.frl.2023.104609

Abstract: We present a Gordon-growth-model-based formula for wealth-income ratios and empirically examine its implications on long-run cross-country differences in wealth-income ratios. Firstly, we find that wealth-income ratios have a negative cross-country correlation with saving rates, contrary to the conventional understanding of the relationship as posited by Piketty and Zucman (2014). Secondly, we find that the labor share of income contributes significantly to cross-country variation in wealth-income ratios.