search query: @indexterm Sectoral models / total: 10
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| Author: | Sorger, G. |
| Title: | Income and wealth distribution in a simple model of growth |
| Journal: | Economic Theory
2000 : VOL. 16:1, p. 23-42 |
| Index terms: | GROWTH INEQUALITY SECTORAL MODELS |
| Language: | eng |
| Abstract: | This paper studies a deterministic one-sector growth model with a constant returns to scale production function and endogenous labor supply. It is shown that the distribution of capital among the agents has an effect on the level per-capita output. There exists a continuum of stationary equilibria with different levels of per-capita output. If the elasticity of intertemporal substitution is large, a higher output level can be achieved when income inequality is great, that is, when the income distribution is strongly dispersed. |
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