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Heterogeneous Conformism and Wealth Distribution in a Neoclassical Growth Model

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  • Kazuo MIno

    () (Kyoto University)

  • Yasuhiro Nakamoto

    () (Kansai University)

Abstract

This paper explores the role of consumption externalities in a neoclassical growth model in which households have heterogeneous preferences. We fi nd that a higher degree of average conformism accelerates the convergence speed of the economy towards the steady state as in the case of homogeneous conformism. Furthermore, we reveal that the wealth inequality expands or shrinks in the case of heterogeneous conformism, while it does not expand but shrinks in the case of homogeneous conformism.

Suggested Citation

  • Kazuo MIno & Yasuhiro Nakamoto, 2015. "Heterogeneous Conformism and Wealth Distribution in a Neoclassical Growth Model," KIER Working Papers 928, Kyoto University, Institute of Economic Research.
  • Handle: RePEc:kyo:wpaper:928
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    5. Kazuo Mino, 2017. "Sunspot-Driven Business Cycles: An Overview," KIER Working Papers 973, Kyoto University, Institute of Economic Research.

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    More about this item

    Keywords

    consumption externalities; heterogeneous agents; wealth distribution;
    All these keywords.

    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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