On the long-run wealth distribution in a simple Ramsey model with heterogeneous households

Tamotsu Nakamura

Economic Modelling, 2020, vol. 84, issue C, 177-180

Abstract: This paper analyzes the long-run wealth distribution in a Ramsey model where individuals have a common rate of time preference but different intertemporal elasticities of substitution. As a result, it is shown that heterogeneity among households in intertemporal substitution is sufficient for the existence of a non-degenerate long-run wealth distribution. We also investigate the properties of the long-run wealth distribution and the transition of capital and consumption using the phase diagram.

Keywords: Ramsey model; Intertemporal elasticity of substitution; Wealth distribution; Transitional dynamics (search for similar items in EconPapers)
JEL-codes: D31 D33 O41 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:84:y:2020:i:c:p:177-180

DOI: 10.1016/j.econmod.2019.04.004

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