EconPapers    
Economics at your fingertips  
 

Heterogeneity in Macroeconomics: The Compositional Inequality Perspective

Marco Ranaldi and Elisa Palagi

LEM Papers Series from Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy

Abstract: This work presents a framework to jointly study individuals' heterogeneity in terms of their capital and labor endowments (endowment heterogeneity) and of their saving and consumption behaviors (behavioral heterogeneity), from an empirical perspective. By adopting a newly developed synthetic measure of compositional inequality, this work classifies more than 20 economies across over two decades on the basis of their heterogeneity characteristics. Modern economies are far from being characterized by agents with same propensities to save and con- sume and same endowments (Representative Agent systems), or by the existence of rich capital-abundant savers and poor hand-to-mouth consumers (Kaldorian systems). Our framework and results are discussed in light of the heterogeneity assumptions underlying several types of macroeconomic models with heterogeneous agents (Kaldorian, TANK & HANK, OLG, and ABM models). A negative relationship between behavioral heterogeneity and the economy's saving rate is also documented.

Keywords: Heterogeneity in Macroeconomics; Compositional Inequality. (search for similar items in EconPapers)
Date: 2022-10-05
New Economics Papers: this item is included in nep-hme
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.lem.sssup.it/WPLem/files/2022-30.pdf (application/pdf)

Related works:
Working Paper: Heterogeneity in macroeconomics: the compositional inequality perspective (2022) Downloads
Working Paper: Heterogeneity in Macroeconomics: The Compositional Inequality Perspective (2022) Downloads
Working Paper: Heterogeneity in Macroeconomics: The Compositional Inequality Perspective (2022) Downloads
Working Paper: Heterogeneity in Macroeconomics: The Compositional Inequality Perspective (2022) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ssa:lemwps:2022/30

Access Statistics for this paper

More papers in LEM Papers Series from Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy Contact information at EDIRC.
Bibliographic data for series maintained by (lem@sssup.it this e-mail address is bad, please contact repec@repec.org).

 
Page updated 2025-03-20
Handle: RePEc:ssa:lemwps:2022/30