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We study the dynamics of the distribution of overlapping generation economy with finitely lived agents and inter-generational transmission of wealth. Financial markets are incomplete, exposing agents to both labor income and capital income risk. We show that the stationary wealth distribution is...
Persistent link: https://www.econbiz.de/10012764838
We study the dynamics of the distribution of overlapping generation economy with finitely lived agents and inter-generational transmission of wealth. Financial markets are incomplete, exposing agents to both labor income and capital income risk. We show that the stationary wealth distribution is...
Persistent link: https://www.econbiz.de/10012463917
Persistent link: https://www.econbiz.de/10003555381
conventional wisdom, rather than calling for more redistribution, the presence of this scale dependence provides a rationale for …. At an aggregate level, a rise in redistribution induces a compression effect on the distribution of pre-tax returns. In … the financial market, I identify general equilibrium trickle-up externalities that provide a force for more redistribution …
Persistent link: https://www.econbiz.de/10013233147
We incorporate the division of income between capital and labor into analysis on the relationship between inequality and growth. Using historical data, we document that changes in the top 1 % income shares are positively associated with subsequent growth of per capita GDP when the capital share...
Persistent link: https://www.econbiz.de/10013239632
conventional wisdom, rather than calling for more redistribution, the presence of this scale dependence provides a rationale for …. At an aggregate level, a rise in redistribution induces a compression effect on the distribution of pre-tax returns. In … the financial market, I identify general equilibrium trickle-up externalities that provide a force for more redistribution …
Persistent link: https://www.econbiz.de/10012499593
Persistent link: https://www.econbiz.de/10013502940
We employ a neoclassical growth model to assess the impact of financial liberalization in a developing country on capital owners` and workers` consumption and welfare. We find in a baseline calibration for an average non-OECD country that capitalists suffer a 42 percent reduction in permanent...
Persistent link: https://www.econbiz.de/10009302997