Heterogeneous EIS and Wealth Distribution in a Neoclassical Growth Model

Yasuhiro Nakamoto

MPRA Paper from University Library of Munich, Germany

Abstract: We introduce the heterogeneities of EIS (elasticities of intertemporal substitution) into the Ramsey version of macrodynamic model with a finite number of agents. The assumption that the degrees of EIS differ among agents means that our economy has various growth rate of private consumption. Then, our contributions are as follows. First, we analytically characterize the steady-state levels of individual capital. Second, we analytically examine the role of heterogeneous EIS for the wealth inequality. Finally, we give numerical examples to see the complicated dynamic motion and the steady-state characterization of wealth inequality.

Keywords: Heterogeneous agents; Elasticity of intertemporal substitution; Convergence speed; Wealth distribution (search for similar items in EconPapers)
JEL-codes: C00 E13 E20 (search for similar items in EconPapers)
Date: 2015-08
New Economics Papers: this item is included in nep-dge, nep-gro and nep-mac
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:67026

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