A note on Piketty and diminishing returns to capital Matthew Rognlie⇤ June 15, 2014 Abstract Capital in the Twenty-First Century predicts a rise in capital’s share of income and the gap r g between capital returns and growth. In this note, I argue thA note on Piketty and diminishing returns to capital Matthew Rognlie⇤ June 15, 2014 Abstract Capital in the Twenty-First Century predicts a rise in capital’s share of income and the gap r g between capital returns and growth. In this note, I argue that nei- ther outcome is likely given realistically diminishing returns to capital accumulation. Instead—all else equal—more capital will erode the ec
