background or methods

https://www.deakin.edu.au/__data/assets/pdf_file/0015/405033/2008_21eco.pdf

Growth with Equity Through Investment in Human Capital

Understanding the economic dynamics behind growth-inequality relationships

This paper proposes a growth model of heterogeneous households with economic structure, wealth accumulation, endogenous labour supply, and tax rates. The paper is focused on effects of redistribution policies on income and wealth distribution, economic structure and economic growth. The paper integrates the Walrasian general equilibrium theory and neoclassical economic growth within a comprehensive framework. We overcome the controversial features in the two traditional theories by applying an alternative approach to households. We build an analytical framework for a disaggregated and microfounded general theory of economic growth with endogenous wealth accumulation. We simulate the model to identify equilibrium, stability and to plot the motion of the dynamic system with three groups. We also carry out comparative dynamic analysis with regard to the lump tax, human capital and propensity to use leisure time.

/pdf/a-study-of-the-role-of-government-in-income-and-wealth-1z2142mtje.pdf

A Study of the Role of Government in Income and Wealth Distribution by Integrating the Walrasian General Equilibrium and Neoclassical Growth Theories

Working Papers on Global Financial Markets

This paper scrutinizes the debate of Keynes and Hayek concerning the adequate re- sponse to economic crises from a historical perspective. In a first step the develop- ment of the Keynesian economic theory, its ascent during the Great Depression and its use during financially sound times is analyzed. In a second step the Hayekian cri- tique to discretionary government intervention and its long run consequences is scru- tinized. In the last step it is analyzed why, in the wake of a crisis, short-run oriented Keynesian therapy dominates long-run Hayekian therapy as in the most recent crisis.

Keynesian Dominance in Crisis Therapy

The purpose of this study is to examine dynamic interdependence between economic development, wealth and income distributions, and discrimination in an integrated Walrasian-general-equilibrium and neoclassical-growth theory. We build a dynamic economy with one consumer goods sector, one capital goods sector, and heterogeneous households. We build a model in which wealth accumulation, income and wealth distribution, time distribution and division of labor interact with each other under a fixed pattern of discrimination. For illustration, we simulate the motion of the economic system with three groups, called the discriminator, the neutral group (neither discriminating nor being discriminated), and the discriminated group. We identify the existence of a unique stable equilibrium point. Our comparative dynamic analyses with regard to different discrimination rates provide some insights. For instance, we show that when the discriminator strengthens its discrimination against the discriminated group and the discriminated group ?positively? reacts the strengthened discrimination, we have the following effects: the national output, the national wealth, the total labor supply, and the output levels and the input factors of the two sectors are increased; the lump sum transfer from the discriminated group to the discriminator is increased; the discriminated group?s wage rate is augmented and the other two groups? wage rates are slightly affected; the discriminator?s work time is reduced, the discriminated group?s work time is increased, and the neutral group?s work time is slightly affected; the discriminated group?s and the discriminator?s consumption and wealth levels are increased, and the neutral group?s consumption and wealth levels are slightly affected.

Growth with Equity Through Investment in Human Capital

Citations

Understanding the economic dynamics behind growth-inequality relationships

A Study of the Role of Government in Income and Wealth Distribution by Integrating the Walrasian General Equilibrium and Neoclassical Growth Theories

Working Papers on Global Financial Markets

Keynesian Dominance in Crisis Therapy

Discrimination and Inequality in an Integrated Walrasian-General-Equilibrium and Neoclassical-Growth Theory

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