Inequality and Aggregate Savings in the Neoclassical Growth Model

Type
working paper
Date Issued
2011
Author(s)
Abstract
Within the context of the neoclassical growth model I investigate the implications
of (initial) endowment inequality when the rich have a higher marginal savings rate than the poor. More unequal societies grow faster in the transition process, and therefore exhibit a higher speed of convergence. Furthermore, there is divergence in consumption and lifetime wealth if the rich exhibit a higher intertemporal elasticity of substitution.
Language
English
HSG Classification
contribution to scientific community
Refereed
No
Publisher
SIAW-HSG
URL
Subject(s)

economics

Division(s)

SIAW - Swiss Institut...

SEPS - School of Econ...

Eprints ID
187949
File(s)
Thumbnail Image

open.access

Name

Foellmi2011_Inequality_Aggregate Savings.pdf

Size

216.53 KB

Format

Adobe PDF

Checksum (MD5)

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