IDEAS home Printed from https://ideas.repec.org/p/kob/dpaper/dp2017-11.html
   My bibliography  Save this paper

Inequalities and Patience in Catching up

Author

Listed:
  • Kazumichi Iwasa

    (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan)

  • Laixun Zhao

    (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan)

Abstract

This paper examines how impatience interacts with inequalities in economic development. We consider two distinct groups of households, (i.e., with intrinsic inequality), and show that (i) under decreasing marginal impatience (DMI), an unequal society may be preferable for poor households; (ii) poor households tend to benefit more from positive shocks under DMI than CMI (constant marginal impatience). (iii) inequality exhibits a sharp inverted-U shape as more people become rich, which should be good news for developing countries in catching up; (iv) a tax on capital income reduces poor house-holds' income when the fraction of the rich is sufficiently small; (v) immigration into rich countries raises their average income but widens the income gap.

Suggested Citation

  • Kazumichi Iwasa & Laixun Zhao, 2017. "Inequalities and Patience in Catching up," Discussion Paper Series DP2017-11, Research Institute for Economics & Business Administration, Kobe University.
  • Handle: RePEc:kob:dpaper:dp2017-11
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kob:dpaper:dp2017-11. 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: (Office of Promoting Research Collaboration, Research Institute for Economics & Business Administration, Kobe University). General contact details of provider: http://edirc.repec.org/data/rikobjp.html .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.