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Consumption Externalities and Wealth Distribution in a Neoclassical Growth Model

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Author Info
Kazuo Mino () (Institute of Economic Research, Kyoto University)
Yasuhiro Nakamoto () (Faculty of Economics, Kyushu Sangyo University)

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Abstract

This paper explores the distributional effect of consumption externalities in a neoclassical growth model with heterogeneous agents. The economy consists of two types of agents each of which perceives different degrees of intergroup as well as intragroup consumption external effects. It is shown that the stationary distribution and transitional dynamics are highly sensitive to the specification of preference structures of each type of agents.

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File URL: http://www.kier.kyoto-u.ac.jp/DP/DP683.pdf
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Publisher Info
Paper provided by Kyoto University, Institute of Economic Research in its series KIER Working Papers with number 683.

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Length: 33pages
Date of creation: Oct 2009
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Handle: RePEc:kyo:wpaper:683

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Find related papers by JEL classification:
D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
E21 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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This page was last updated on 2009-11-17.

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