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Economic Allocations with Permanent Heterogeneities: An Example

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주제분류경제학

초록

Permanent heterogeneities in initial asset, preference for leisure, and individual productivity are introduced in a dynamic general equilibrium model and the functional relationship between the heterogeneities and economic allocations is studied. With the permanent heterogeneities, we show that a unique saddle path equilibrium is supported by an initial asset distribution. Depending on the heterogeneities, the distributions of consumption, income, asset and labor income may differ incredibly. However,the associated aggregate economies are not different very much.

Abstract

Permanent heterogeneities in initial asset, preference for leisure, and individual productivity are introduced in a dynamic general equilibrium model and the functional relationship between the heterogeneities and economic allocations is studied. With the permanent heterogeneities, we show that a unique saddle path equilibrium is supported by an initial asset distribution. Depending on the heterogeneities, the distributions of consumption, income, asset and labor income may differ incredibly. However,the associated aggregate economies are not different very much.

참고문헌 (35)

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