A heterogeneous-agent model of growth and inequality for the UK - what has caused the UK's growth collapse since 2008?

A. Patrick Minford and Zheyi Zhu

No E2026/6, Cardiff Economics Working Papers from Cardiff University, Cardiff Business School, Economics Section

Abstract: This paper builds on Yang et al. (2021). This analysed the effect on UK economic growth of wealth inequality and tax or regulative disincentives to entrepreneurs, over recent decades with a heterogeneous-agent growth model where agents can enhance individual productivity growth by undertaking entrepreneurship. In this further note we update the study with the latest data and also examine how far recent policies have contributed to the collapse in UK growth since 2008. The model is estimated and tested by indirect inference, with data updated to 2024. The model explains the UK rise in growth after the 1970s and its recent collapse in terms of changing disincentives to entrepreneurs.

Keywords: Heterogeneous-agent Model; Entrepreneurship; Growth; Inequality; Indirect Inference; planning; infrastructure (search for similar items in EconPapers)
JEL-codes: E10 O30 O40 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2026-06
References: Add references at CitEc
Citations:

Downloads: (external link)
http://carbsecon.com/wp/E2026_6.pdf (application/pdf)

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:cdf:wpaper:2026/6

Access Statistics for this paper

More papers in Cardiff Economics Working Papers from Cardiff University, Cardiff Business School, Economics Section Contact information at EDIRC.
Bibliographic data for series maintained by Yongdeng Xu ().