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Consumption Externalities and Wealth Distribution in a Neoclassical Growth Model

Author

Listed:
  • 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.

Suggested Citation

  • Kazuo Mino & Yasuhiro Nakamoto, 2009. "Consumption Externalities and Wealth Distribution in a Neoclassical Growth Model," KIER Working Papers 683, Kyoto University, Institute of Economic Research.
  • Handle: RePEc:kyo:wpaper:683
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    File URL: http://www.kier.kyoto-u.ac.jp/DP/DP683.pdf
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    References listed on IDEAS

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    Cited by:

    1. Kazuo MIno & Yasuhiro Nakamoto, 2014. "Conformism and Wealth Distribution," KIER Working Papers 901, Kyoto University, Institute of Economic Research.

    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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