How does inequality motivate people and at what cost? We develop a model of perpetual youth with heterogeneous upward … survival depends on health capital produced from time investment and health goods. Higher fundamental inequality, working … inequality worsen because the poor have less capacity to respond. By diverting resources from health production, aspirations also …

Was the increase in income inequality in the US due to permanent shocks or merely to an increase in the variance of … changes, transitory and permanent shocks and estimate the contribution of each to total inequality. Our model fits the joint … evolution of consumption and income inequality well and delivers two main results. First, we find that permanent changes in …

' current income a lump-sum tax reduces inequality if all parents have strict investment incentives. However, if some parents …

state inequality and macroeconomic history-dependence are not affected. …

level of interest rate but is more inequality reducing. By taking into account different assets returns and unequal access … to them, we find that the PAYG pension system generates lower level of interest rate and increases wealth inequality. By … using Matsuyama's (2000) technology that generates dynamic endogenous inequality, we represent the bequest and saving …

China's income inequality has been largely overlooked as the economy moves rapidly toward the Kuznets curve peak. This paper … find that China's growth is positively affected by saving but has a limited effect on saving, that inequality mainly has a … negative impact on growth but has a positive impact on saving, and that inequality is a stronger factor than growth in …

over the period 1967-1996. We then use the estimated parameter values to decompose inequality in all variables of interest …

Was the increase in income inequality in the US due to permanent shocks or merely to an increase in the variance of …-cycle changes, transitory and permanent shocks and estimate the contribution of each to total inequality. Our model fits the joint … evolution of consumption and income inequality well and delivers two main results. First, we find that permanent changes in …

This paper applies a social learning model to the optimal consumption rule of Allen & Carroll (2001), and delivers … results in the literature, both in terms of speed of convergence and parsimony of the learning model. The learning model … exhibits several appealing features: it is frugal, easy to apply to a range of learning objectives, requires few procedures and …