Social institutions and economic inequality: Modeling the onset of the Kuznets curve

Arbeitspapier

Theoretical models of the Kuznets Curve have been purely analytical with little contribution towards an understanding of the timing of the process and the presence of additional mechanisms affecting its timing. This paper proposes an agent-based version of Acemoglu and Robinson's model of the Kuznets Curve. In extending their analytical framework we include heterogeneity of agents' income and a mating mechanism that together represent elements of social mobility. These two simple changes proved to be enough to shed light on the length and timing before high inequality implies regime change. Thus, this work may contribute to an effective empirical assessment of the Kuznets curve as it explicitly considers the time dimension of the process and the effects of considering social dynamics.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Discussion Paper ; No. 204

Classification and Topics

• Classification: Wirtschaft ; History of Economic Thought since 1925: Historical; Institutional; Evolutionary; Austrian; Stockholm School ; Computational Techniques; Simulation Modeling ; Equity, Justice, Inequality, and Other Normative Criteria and Measurement ; Analysis of Collective Decision-Making: General
• Subject: Kuznets curve ; agent-based model ; inequality ; institutions

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Alvarez-Pereira, Brais ; Bale, Catherine S. E. ; Furtado, Bernardo Alves ; Gentile, James E. ; Gräbner, Claudius ; Henderson, Heath ; Lipari, Francesca
• Event: Veröffentlichung
• (who): Institute for Applied Economic Research (ipea)
• (where): Brasília
• (when): 2015

Further information

• Handle: http://hdl.handle.net/10419/220292
• Last update: 10.03.2025, 11:44 AM CET