The Rich and the Poor in a Simple Model of Growth and Distribution
We consider a model of economic growth with altruistic consumers who care both about their consumption relative to others and the disposable income of their offsprings. We show that if the parameter accounting for the importance of positional concerns is lower than a certain threshold, then the wealth of all agents converges irrespective of the initial distribution of wealth. If, however, it is higher than the threshold, then all the capital is eventually owned by the households which were the richest from the outset.
|Date of creation:||15 Jul 2013|
|Contact details of provider:|| Postal: 3 Gagarinskaya Street, 191187 St. Petersburg|
Phone: +7 (812) 275-1130
Web page: http://www.eu.spb.ru/econ/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Fisher, Walter H. & Heijdra, Ben J., 2009.
"Keeping up with the ageing Joneses,"
Journal of Economic Dynamics and Control,
Elsevier, vol. 33(1), pages 53-64, January.
- Fisher, Walter H. & Heijdra, Ben J., 2007. "Keeping up with the Ageing Joneses," Economics Series 204, Institute for Advanced Studies.
- Stéphane Lambrecht & Philippe Michel & Emmanuel Thibault, 2006. "Capital Accumulation and Fiscal Policy in an OLG Model with Family Altruism," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 8(3), pages 465-486, August.
- LAMBRECHT, Stéphane & MICHEL, Philippe & THIBAULT, Emmanuel, "undated". "Capital accumulation and fiscal policy in an OLG model with family altruism," CORE Discussion Papers RP 1913, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- LAMBRECHT, Stéphane & MICHEL, Philippe & THIBAULT, Emmanuel, 2005. "Capital accumulation and fiscal policy in an OLG model with family altruism," CORE Discussion Papers 2005027, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
When requesting a correction, please mention this item's handle: RePEc:eus:wpaper:ec0613. See general 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: (Mikhail Pakhnin)
If references are entirely missing, you can add them using this form.