Income Distribution in Macroeconomic Models

By G. Bertola, Reto Foellmi, Josef Zweimüller. 2005

209 citations recorded by the source corpus.

This book looks at the distribution of income and wealth and the effects that this has on the macroeconomy, and vice versa. Is a more equal distribution of income beneficial or harmful for macroeconomic growth, and how does the distribution of wealth evolve in a market economy? Taking stock of results and methods developed in the context of the 1990s revival of growth theory, the authors focus on capital accumulation and long-run growth. They show how rigorous, optimization-based technical tools can be applied, beyond the representative-agent framework of analysis, to account for realistic market imperfections and for political-economic interactions. The treatment is thorough, yet accessible to students and nonspecialist economists, and it offers specialist readers a wide-ranging and innovative treatment of an increasingly important research field. The book follows a single analytical thread through a series of different growth models, allowing readers to appreciate their structure and crucial assumptions. This is particularly useful at a time when the literature on income distribution and growth has developed quickly and in several different directions, becoming difficult to overview.

Subfields: Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/cc117ad195b7edb6e3fe4947670b9941349b4e3e

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Citations in the corpus

Inequality Of Opportunity And Growth (2013, background): “As a result, the relationship between inequality 2 Surveys on this issue can be found in Bénabou (1996), Bourguignon (1996), Aghion et al. (1999), Bertola et al. (2005) and Ehrhart (2009). and growth turns out to be ambiguous.”
Income Inequality and the Development of Environmental Technologies (2011, background): “Aswell-documented in the literatureondemand-driven innovations (e.g. Bertola et al., 2006; von Hippel, 1988), pioneer consumers have a higher capacity to buy initially more expensive green products, hence they trigger innovations that, throughout price reductions,might enable low-budget consumers…”
Report No. 19: Geographic Mobility in the European Union: Optimising its Economic and Social Benefits (2008, background): “Bertola et al. (2006) argue that liquidity constraints can directly affect the mobility choice as the incurred mobility costs translate into lower consumption.”