Wealth distribution and output fluctuations

• 成果类型: Article
• 署名作者: Ghiglino, Christian; Venditti, Alain
• 署名单位: University of Essex; Centre National de la Recherche Scientifique (CNRS); Universite Catholique de Lille; EDHEC Business School
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2011.06.004
• 发表日期: 2011
• 页码: 2478-2509
• 关键词: Wealth inequality; Pareto distribution; Gini index; Elastic labor supply; Endogenous equilibrium business cycles

摘要

We explore the link between wealth inequality and output fluctuations in a general two-sector neoclassical growth model with endogenous labor and heterogeneous agents. When agents have homogeneous CRRA preferences and individual wealth is Pareto distributed, a sufficiently large rise in the Gini index typically leads to an increase in endogenous fluctuations of output. For general economies, we show that under plausible conditions on the fundamentals, wealth inequality is still a destabilizing factor. (C) 2011 Elsevier Inc. All rights reserved.