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Consumption Externalities and Wealth Distribution in a Neoclassical Growth Model

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  • Kazuo Mino

    ()
    (Institute of Economic Research, Kyoto University)

  • Yasuhiro Nakamoto

    ()
    (Faculty of Economics, Kyushu Sangyo University)

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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Bibliographic 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
Date of revision:
Handle: RePEc:kyo:wpaper:683

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  15. Andrew B. Abel, . "Asset Prices Under Habit Formation and Catching Up With the Jones," Rodney L. White Center for Financial Research Working Papers, Wharton School Rodney L. White Center for Financial Research 1-90, Wharton School Rodney L. White Center for Financial Research.
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Cited by:
  1. Kazuo MIno & Yasuhiro Nakamoto, 2014. "Conformism and Wealth Distribution," KIER Working Papers, Kyoto University, Institute of Economic Research 901, Kyoto University, Institute of Economic Research.

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