Growth and inequality examined by integrating the Walrasian general equilibrium and neoclassical growth theories

Artikel

This paper builds a heterogeneous-households growth model of a small open economy with fixed resource (land) by integrating the Walrasian general equilibrium and neoclassical growth theories. The production side consists of two sectors. We use an alternative utility function proposed by Zhang, which enable us to develop a dynamic growth model with genuine heterogeneity. The wealth and income inequality is due to household heterogeneity in preferences and human capital as well as the households' initial wealth. This is different from the standard Ramsey-type heterogeneous-households growth models, for instance, by Turnovsky and Garcia-Penalosa (2008), where agents are heterogeneous only in their initial capital endowment, not in preference or/and human capital. We simulate the model for an economy with three types of households. The system has a unique stable equilibrium point. We also simulate the motion of the national economy and carry out comparative dynamic analysis with regard to changes in the rate of interest, the population, the propensity to stay at home, and the propensity to save. The comparative dynamic analysis provides some important insights.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Journal: International Journal of Economic Sciences and Applied Research ; ISSN: 1791-3373 ; Volume: 7 ; Year: 2014 ; Issue: 1 ; Pages: 7-32 ; Kavala: Eastern Macedonia and Thrace Institute of Technology

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Innovation and Invention: Processes and Incentives ; Price Level; Inflation; Deflation
• Thema: growth ; inequality ; capital accumulation ; small open economy ; wealth and income distribution

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Zhang, Wei-Bin
• Ereignis: Veröffentlichung
• (wer): Eastern Macedonia and Thrace Institute of Technology
• (wo): Kavala
• (wann): 2014

Weitere Informationen

• Handle: http://hdl.handle.net/10419/114604
• Letzte Aktualisierung: 10.03.2025, 11:45 MEZ