Showing 1 - 7 of 7
This paper studies the business cycle dynamics of the income and wealth distributions in the context of the neoclassical growth model where agents are heterogeneous in initial wealth and non-acquired skills. Our economy admits a representative consumer which enables us to characterize the...
Persistent link: https://www.econbiz.de/10005212557
In this paper we present a projection of the future evolution of the population and of the dependency ratio in Spain. Several definitions of dependency ratios are derived, all with more economic content than the simple definition of this concept. Finally, the implications of these demographic...
Persistent link: https://www.econbiz.de/10008550415
This paper extends the indivisible-labor model by Hansen (1985) and Rogerson (1988) to include multiple consumers who differ in initial wealth and whose labor productivities are subject to idiosyncratic shocks. In the presence of idiosyncratic uncertainty, the optimal allocations for the...
Persistent link: https://www.econbiz.de/10005731279
This paper studies the properties of solutions to a log-linearized version of the neoclassical growth model with quasi-geometric discounting. We show that after the log-linearization, the model has indeterminacy and multiplicity of equilibria even though the original non-linear model has a...
Persistent link: https://www.econbiz.de/10005731329
The paper proposes a theory of the wage arrears phenomenon in transition economies. We build on the standard one-sector neoclassical growth model. The neoclassical firms in transition make losses and use wage arrears as the survival strategy. At the agents' level, the randomness in the timing...
Persistent link: https://www.econbiz.de/10005731383
We investigate the impact of preference shocks on the aggregate dynamics of the U.S. economy in the context of a neoclassical growth model derived from aggregation. The aggregation result we use is as follows: if markets are complete and if agents have identical preferences of the addilog type,...
Persistent link: https://www.econbiz.de/10005731417
This paper studies a complete-market version of the neoclassical growth model, where agents face idiosyncratic shocks to earnings. We show that if agents possess identical preferences of either the CRRA or the addilog type, then the heterogeneous-agent economy behaves as if there was a...
Persistent link: https://www.econbiz.de/10005515908