Low rates driving up housing share of income – RBA paper
Share of aggregate US income going to capital is on the rise
Falling nominal rates are a significant factor behind the growing importance of capital income in the US, particularly income from housing, a discussion paper published on June 9 by the Reserve Bank of Australia finds.
Author Gianni La Cava builds on the work of economists including Thomas Piketty and Matthew Rognlie in the paper, Housing Prices, Mortgage Interest Rates and the Rising Share of Capital Income in the United States. Piketty documented the rising share of capital income in aggregate
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