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Recent research stresses the macroeconomic dimension of income distribution, but no theory has yet emerged. In this note, we introduce factor shares into popular growth models to gain insights into the macroeconomic effects of income distribution. The cost of modifying existing models is low...
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implies that when the productivity elasticity of distortions increases from 0.09 in the U.S. to 0.5 in India, aggregate output …We consider a tractable model of heterogeneous production units that features endogenous entry and productivity … standard factor misallocation framework, policy distortions featuring a positive productivity elasticity of distortions imply …
Persistent link: https://www.econbiz.de/10012979762
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implies that when the productivity elasticity of distortions increases from 0.09 in the U.S. to 0.5 in India, aggregate output …We consider a tractable model of heterogeneous production units that features endogenous entry and productivity … standard factor misallocation framework, policy distortions featuring a positive productivity elasticity of distortions imply …
Persistent link: https://www.econbiz.de/10012455871
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