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Income and Wealth Distributions Along the Business Cycle: Implications from the Neoclassical Growth Model
Neoclassical growth model heterogeneous agents aggregation business cycle income and wealth distributions inequality
2015/7/21
This paper studies the business cycle dynamics of income and wealth distributions in the context of the neoclassical growth model where agents are heterogeneous in initial wealth and non-acquired skil...
How do individuals accumulate wealth as they interact economically? We outline the consequences of a simple microscopic model in which repeated pairwise exchanges of assets between individuals build t...