Endogenous inequality and fluctuations in a two-country model

• 成果类型: Article
• 署名作者: Kikuchi, Tomoo; Stachurski, John
• 署名单位: National University of Singapore; Kyoto University
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2009.01.001
• 发表日期: 2009
• 页码: 1560-1571
• 关键词: Credit market imperfection; Endogenous cycles; symmetry-breaking; Two-country model

摘要

We study a two-country version of Matsuyama's [K. Matsuyama, Financial market globalization, symmetry-breaking, and endogenous inequality of nations, Econometrica 72 (2004) 853-884] world economy model. As in Matsuyama's model, symmetry-breaking can be observed, and symmetry-breaking generates endogenously determined levels of inequality. In addition, we show that when the countries differ in population size, their interaction through credit markets may lead to persistent endogenous fluctuations. (C) 2009 Elsevier Inc. All rights reserved.