Dynamics of income distribution

Authors
Li, HY Xie, DY Zou, HF
Citation
Hy. Li et al., Dynamics of income distribution, CAN J ECON, 33(4), 2000, pp. 937-961
Citations number
34
Categorie Soggetti
Economics
Journal title
CANADIAN JOURNAL OF ECONOMICS-REVUE CANADIENNE D ECONOMIQUE
ISSN journal
00084085 → ACNP
Volume
33
Issue
4
Year of publication
2000
Pages
937 - 961
Database
ISI
SICI code
0008-4085(200011)33:4<937:DOID>2.0.ZU;2-X
Abstract
In this paper, we have obtained closed-form solutions in Cass-Koopmans grow th models with heterogeneous agents. The relationship between the form of t he production function and the dynamics of income distribution is made expl icit. We then use this relationship to determine what production structure is simultaneously consistent with facts on growth and income inequality. Ou r empirical findings give support to models with decreasing returns in the reproducible factor. JEL Classification: D3, O1, O4.