Home
About
Aims and Scope
Editorial Board
Submit
Archive
Search
|
Journal of Economic Theory and Econometrics
Journal of the Korean Econometric Society
Economic Allocations with Permanent Heterogeneities: An Example
Vol.23, No.1, March 2012, 30–47
|
|
Jang-Ok Cho
(Sogang University)
|
|
|
|
Abstract
Permanent heterogeneities in initial asset, preference for leisure, and individual productivity are introduced in a dynamic general equilibrium model and the functional relationship between the heterogeneities and economic allocations is studied. With the permanent heterogeneities, we show that a unique saddle path equilibrium is supported by an initial asset distribution. Depending on the heterogeneities, the distributions of consumption, income, asset and labor income may differ incredibly. However, the associated aggregate economies are not different very much.
|
Keywords
Heterogeneities, Saddle Path Equilibria, Income Distribution, Aggregate Productivity |
JEL classification codes
E13, E21, E25, O40 |
|
Links
KCI
KES
SCOPUS
MathJax
|