Minimum consuption, transitional dynamics ana the kuznets curve
AbstractThis paper investigates the evolution of wealth in a one sector growth model since the early stages of development to its steady state. A key feature of the model is that a household's consumption cannot fall below a positive level each period. This requirement introduces a positive association between the intertemporal elasticity of substitution and household wealth. Households only differ in their initial holdings of capital. The model is calibrated to match some key statistics of the US economy. The level of inequality in the walth distribution of our artificial economy increases in the early stages of development and declines as the economy approaches the steady state. The level of wealth inequality and its evolution resembles that of the US economy. Additionally our model illustrates that observing a time series Kuznets curve does not imply we should observe such relationship in cross-section data, and vice-versa.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by FEDEA in its series Working Papers with number 2000-03.
Date of creation:
Date of revision:
Contact details of provider:
Web page: http://www.fedea.net
This paper has been announced in the following NEP Reports:
- NEP-ALL-2000-02-21 (All new papers)
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Carmen Arias).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.