Climate Change Skepticism in the Face of Catastrophe
AbstractThis paper develops a general-equilibrium model of skill-biased technological change that approximates the observed shifts in the shares of wage and non-wageincome going to the top decile of U.S. households since 1980. Under realisticassumptions, we find that all agents can benefi…t from the technology change,provided that the observed rise in redistributive transfers over this period istaken into account. We show that the increase in capital’s share of total incomeand the presence of capital-entrepreneurial skill complementarity are two keyfeatures that help support the wages of ordinary workers as the new technologydiffuses.
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Bibliographic InfoPaper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 12-112/VIII.
Date of creation: 25 Oct 2012
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Income Inequality; Skill-biased Technological Change; Capital-skill Complementarity; Redistribution; Welfare;
Find related papers by JEL classification:
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
- E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-11-17 (All new papers)
- NEP-DGE-2012-11-17 (Dynamic General Equilibrium)
- NEP-MAC-2012-11-17 (Macroeconomics)
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