On Thursday 28 November, Professor Nobuhiro Kiyotaki will visit Edinburgh to present his recent paper Intangibles, Inequality and Stagnation. This paper examines how aggregate output and income distribution interact with accumulation of intangible capital over time and across individuals. Kiyotaki considers an overlapping generations economy in which managerial skill (intangible capital) is essential for production, and it is acquired by young workers through on-the-job training by old managers. We show that, when young trainees are not committed to staying in the same firms and repaying their debt, a small difference in initial endowment and ability of young workers leads to a large inequality in accumulation of intangibles and lifetime income. Kiyotaki finds that negative shock to endowment or the degree of commitment generates a persistent stagnation and a rise in inequality.
Following the seminar on Friday 29 November, there will be dinner and discussion with members of the MacCaLM research team, management team, and members of the Scottish economic community. The keynote after-dinner speech will be given by MacCaLM Principal Investigator, John Moore.
As part of his visit to Edinburgh, Professor Kiyotaki will receive the Doctor of Science (Social Science) Honorary Degree from the University of Edinburgh.