Inequalities and fluctuations in a dynamic general equilibrium model

Christian Ghiglino and Marielle Olszak-Duquenne
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Marielle Olszak-Duquenne: Departement d'Econometrie, University of Geneva, 102, Bd. Carl-Vogt,1211 Geneve-4, SWITZERLAND

Economic Theory, 2001, vol. 17, issue 1, 24 pages

Abstract: In the present paper a tractable two-sector neo-classical growth model with heterogeneous agents is considered. The local dynamic properties of the equilibrium path are analyzed in relation with the underlying characteristics of the economy. In particular, the existence of fluctuations is related to the degree of heterogeneity in labor and in capital endowments. When applied to international trade theory, the analysis shows that free trade may distabilize a world economy that is originally stable under the regime of autarky.

Keywords: Two-sector growth; General equilibrium; Heterogeneity; Stability of steady states; Fluctuations; Inequalities; International trade; Turnpike. (search for similar items in EconPapers)
JEL-codes: D51 D91 E32 (search for similar items in EconPapers)
Date: 2000-11-14
Note: Received: December 28, 1998; revised version: October 29, 1999
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Citations: View citations in EconPapers (14)

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