Research

Capital and the Hindu Rate of Growth

October 8, 2016

This paper finds that a combination of policies and shocks were able to significantly depress the personal wealth of the Top 0.1% between 1961-1986.

A portfolio decomposition by asset categories for the rich reveals that there was a U shaped trend in the average value of movable assets while wealth invested in land significantly declined. Disparity within top wealth groups also follows a shrinking and swelling, consistent with the intervention of the state in private capital. These results have implications for the equalizing forces inherent in tax policy vis-a-vis the rich and the role of the state in regulating capital in poor nations.

Author: Rishabh Kumar
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