Rent Sharing, Aggregate Saving, and Growth

Charles Engel and Kenneth M. Kletzer

Review of Development Economics, 1998, vol. 2, issue 2, 107-122

Abstract: The paper investigates the effects on saving and growth of the rent sharing between firm owners and workers documented in recent empirical work. In an overlapping‐generations framework, more rent sharing is found to increase growth. This result also holds in a model with a single generation of infinitely lived consumers in which some consumers are patient and save and others are impatient but credit‐constrained and simply consume all their current income. This latter result is surprising since rent sharing effectively redistributes income from savers to nonsavers, yet raises aggregate saving.

Date: 1998
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/1467-9361.00032

Related works:
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:bla:rdevec:v:2:y:1998:i:2:p:107-122

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1363-6669

Access Statistics for this article

Review of Development Economics is currently edited by E. Kwan Choi

More articles in Review of Development Economics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().