Heterogeneous Agents, Distribution and Growth

L. Paquin

Working Papers from Laval - Recherche en Politique Economique

Abstract: We modify the Uzawa-Lucas representative agent model of endogenous economic growth to allow for a variety of differences among households: differences in their tastes, in their human capital production technologies, and in their initial endowments. Some differences are incompatible with the existence of a steady- state equilibrium, while others have no effect upon the steady-state growth rate. However, a variety of differences give rise to inequalities in the distribution of income and to variations in the steady-state rate of growth. Furthermore, a redistributive tax and transfer policy can have a significant impact upon the steady-state level of investment in human capital and, thus, upon the rate of economic growth.

Keywords: ECONOMIC GROWTH; ECONOMIC MODELS (search for similar items in EconPapers)
JEL-codes: O15 O41 (search for similar items in EconPapers)
Pages: 37 pages
Date: 1999
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:fth:lavape:9913

Access Statistics for this paper

More papers in Working Papers from Laval - Recherche en Politique Economique UNIVERSITE LAVAL, GREPE DEPARTEMENT D'ECONOMIQUE, QUEBEC G1K 7P4.. Contact information at EDIRC.
Bibliographic data for series maintained by Thomas Krichel ().