haku: @author Aghion, P. / yhteensä: 25
viite: 18 / 25
| Tekijä: | Aghion, P. Bolton, P. |
| Otsikko: | A theory of trickle-down growth and development |
| Lehti: | Review of Economic Studies
1997 : APR, VOL. 64(2):219, p. 151-172 |
| Asiasana: | CAPITAL MARKETS ECONOMETRIC MODELS GROWTH INCOMES INEQUALITY CAPITAL ACCUMULATION |
| Kieli: | eng |
| Tiivistelmä: | This article develops a model of growth and income inequalities in the presence of imperfect capital markets, and analyzes the trickle-down effect of capital accumulation. The source of both capital market imperfections and the emergence of persistent income inequalities is moral hazard with limited wealth constraints on the part of the borrowers. When the rate of capital accumulation is high, the economy converges to a unique invariant wealth distribution. Even though the trickle-down mechanism can lead to a unique steady-state distribution under laissez-faire, there is room for government intervention. Redistribution of wealth from rich lenders to poor and middle class borrowers improves the production efficiency of the economy because it brings about greater equality of opportunity, for example. |
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