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Asset bubbles in explaining top income shares

Author

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  • Sarkar Saikat
  • Tuomala Matti

    (Faculty of Management, University of Tampere)

Abstract

Our empirical analysis provides support for the view that asset-bubbles togetherwith economic fundamentals such as caused by increases in innovation-led growth are an important part of story in explaining increasing top income inequality. Moreover, top tax rates have played an important role. At the same time with large growth in top income shares over the past few decades, top tax rates on upper income earners have declined signiÖcantly in many advanced countries

Suggested Citation

  • Sarkar Saikat & Tuomala Matti, 2018. "Asset bubbles in explaining top income shares," Working Papers 1821, Tampere University, Faculty of Management and Business, Economics.
    • Handle: RePEc:tam:wpaper:1821
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    File URL: https://urn.fi/URN:ISBN:978-952-03-0784-4
    File Function: First version, 2018
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    Keywords

    top income shares; bubbles and crashes; innovations; top tax rates;
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