Wealth inequality and dynamic stability

We explore the link between wealth inequality and stability in a two-sector neoclassical growth model with heterogeneous agents. We show that when the inverse of absolute risk aversion (or risk tolerance) is a strictly convex function, wealth inequality is a factor that favors instability. In the op...

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Veröffentlicht in:	Journal of economic theory 2005-09, Vol.124 (1), p.106-115
1. Verfasser:	Ghiglino, Christian
Format:	Artikel
Sprache:	eng
Schlagworte:	Correlation analysis Economic growth Economic theory Growth models Heterogeneity Inequality Instability Studies Wealth Wealth and income inequality
Online-Zugang:	Volltext
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