Wealth inequality and dynamic stability

• 成果类型: Article
• 署名作者: Ghiglino, C
• 署名单位: University of London; Queen Mary University London; University of Bern
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2004.06.004
• 发表日期: 2005
• 页码: 106-115
• 关键词: economic growth; Heterogeneity; wealth and income inequality; instability

摘要

We explore the link between wealth inequality and stability in a two-sector neoclassical growth model with heterogeneous agents. We show that when the inverse of absolute risk aversion (or risk tolerance) is a strictly convex function, wealth inequality is a factor that favors instability. In the opposite case, inequality favors stability. Our characterization also shows that whenever absolute risk tolerance is linear, as when preferences exhibit hyperbolic absolute risk aversion (HARA), wealth heterogeneity is neutral. (c) 2004 Elsevier Inc. All rights reserved.