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Social Status and Inequality in an Integrated Walrasian-General Equilibrium and Neoclassical-Growth Theory

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  • Wei-Bin Zhang

    (Ritsumeikan Asia Pacific University)

Abstract

This study deals with interactions between social status, economic growth and income and wealth distribution in an economic growth model of heterogeneous households with economic structure. The model emphasizes the role of social status on economic structural change and wealth and income distribution. It is influenced by the ideas related to economic growth and social status in the literature of economic growth and an integrated Walrasian general equilibrium theory and neoclassical growth theory. The economic system consists of one capital goods sector, one consumer goods sector, and any number (of types) of households. The motion is described by a set of differential equations. For illustration, we simulate the motion of the economic system with three groups of households. We identify the existence of a unique stable equilibrium point. We also carry out comparative dynamic analysis. The comparative analyses provide some insights into the complexity of economic growth with social status.

Suggested Citation

  • Wei-Bin Zhang, 2017. "Social Status and Inequality in an Integrated Walrasian-General Equilibrium and Neoclassical-Growth Theory," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 42(4), pages 95-118, December.
    • Handle: RePEc:jed:journl:v:42:y:2017:i:4:p:95-118
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    Cited by:

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    More about this item

    Keywords

    Walrasian General Equilibrium Theory; Social Status; Neoclassical Growth Theory; Income and Wealth Distribution; Preference Change;
    All these keywords.

    JEL classification:

    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • Z1 - Other Special Topics - - Cultural Economics

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