Heterogeneous conformism and wealth distribution in a neoclassical growth model

Kazuo Mino and Yasuhiro Nakamoto ()

Economic Theory, 2016, vol. 62, issue 4, No 3, 689-717

Abstract: Abstract This paper explores the role of consumption externalities in a neoclassical growth model in which households have heterogeneous preferences. We find that a higher degree of average conformism accelerates the convergence speed of the economy toward the steady state as in the case of homogeneous conformism. Furthermore, we reveal that the wealth inequality expands or shrinks in the case of heterogeneous conformism, while it does not expand but shrinks in the case of homogeneous conformism.

Keywords: Consumption externalities; Heterogeneous agents; Wealth distribution (search for similar items in EconPapers)
JEL-codes: D31 E13 E21 O40 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (8)

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Working Paper: Heterogeneous Conformism and Wealth Distribution in a Neoclassical Growth Model (2015)
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DOI: 10.1007/s00199-015-0923-6

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