Inequalities and Patience for Tomorrow
This paper examines how impatience interacts with inequalities in economic devel- opment. In a society of intrinsic inequality, we show that (i) poor households tend to bene
t more from positive shocks under decreasing marginal impatience (DMI) than un- der constant marginal impatience (CMI) and increasing marginal impatience (IMI); (ii) an unequal society may be preferable for poor households under DMI; (iii) urbanization can increase the income inequality, while raising overall welfare; (iv) under DMI even if all households are allowed to own assets, with di¤erent initial asset holdings, the economy will not converge to the steady state where everybody is a capitalist.
Year of publication: |
2013-02
|
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Authors: | Iwasa, Kazumichi ; Zhao, Laixun |
Institutions: | Research Institute for Economics and Business Administration, Kobe University |
Saved in:
freely available
Extent: | application/pdf |
---|---|
Series: | Discussion Paper Series. - ISSN 1345-2207. |
Type of publication: | Book / Working Paper |
Notes: | Number DP2013-04 29 pages |
Source: |
Persistent link: https://www.econbiz.de/10010970510
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