Ghiglino, Christian; Venditti, Alain - HAL - 2008
We explore the link between wealth inequality and business cycle fluctuations in a two-sector neoclassical growth model … with endogenous labor and heterogeneous agents. Assuming that wealth inequality is described by the distribution of shares … tolerance indices are linear, as with HARA utility, even a low level of taste heterogeneity ensures that a rise in inequality …