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Thomas Piketty points out that when r>g, the economy will be on an explosive path of concentrationof wealth. To prevent that, he argues in favor
Thomas Piketty points out that when r>g, the economy will be on an explosive path of concentrationof wealth. To prevent that, he argues in favor of introducing awealth tax()to reducer to a level below g.In the Solow growth model, what consequence wouldsuch atax ()have on the steady-stateoutput per capita (capital-labor ratio) and on real wages? Focus your analysis on Piketty highlight (assuming) whereinitiallyr>g.
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