An agent-based model of trickle-up growth and income inequality

Palagi, Elisa; Napoletano, Mauro; Roventini, Andrea; Gaffard, Jean‐Luc

doi:10.2139/ssrn.3873764

Cited by 2 publications

(1 citation statement)

References 65 publications

(61 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Caiani et al (2019) differentiate, instead, individuals into four hierarchical classes, ranging from workmen to top managers. All agents earn both wages and interests received on previous period deposits.Propensities to consume are, however, fixed within each social class Palagi et al (2021). present a simple agent-based model in which all households earn income from both labor and capital incomes in the form of interests when savings are positive.…”

mentioning

confidence: 99%

Heterogeneity in Macroeconomics: The Compositional Inequality Perspective

Ranaldi¹,

Palagi²

2022

Preprint

View full text Add to dashboard Cite

This work presents a framework to jointly study individuals’ heterogeneity in terms of their capital and labor endowments (endowment heterogeneity) and of their saving and consumption behaviors (behavioral heterogeneity), from an empirical perspective. By adopting a newly developed synthetic measure of compositional inequality, this work classifies more than 20 economies across over two decades on the basis of their heterogeneity characteristics. Modern economies are far from being characterized by agents with same propensities to save and consume and same endowments (Representative Agent systems), or by the existence of rich capital-abundant savers and poor hand-to-mouth consumers (Kaldorian systems). Our framework and results are discussed in light of the heterogeneity assumptions underlying several types of macroeconomic models with heterogeneous agents (Kaldorian, TANK & HANK, OLG, and ABM models). A negative relationship between behavioral heterogeneity and the economy’s saving rate is also documented. (Stone Center on Socio-Economic Inequality Working Paper)

show abstract

mentioning

confidence: 99%

Heterogeneity in Macroeconomics: The Compositional Inequality Perspective

Ranaldi¹,

Palagi²

2022

Preprint

View full text Add to dashboard Cite

show abstract

An agent-based model for Secular Stagnation in the USA: theory and empirical evidence

Borsato

2022

J Evol Econ

View full text Add to dashboard Cite

The paper extends the research started with Borsato (2020). I develop an agent-based, stock-flow consistent growth model to analyze the interplay between income distribution, innovation and productivity growth. Results still show that the mounting shrinkage of the labour share impacts negatively upon firm's innovative effort. Additionally, I question the neoclassical belief on the negative interest-elasticity of investments, since decreases in the rate of interest are not associated with increases in capital accumulation. Finally, the panel cointegration analysis based on US manufacturing industries corroborates the theoretical predictions for the period 1958 − 2011.

show abstract

An agent-based model of trickle-up growth and income inequality

Cited by 2 publications

References 65 publications

Heterogeneity in Macroeconomics: The Compositional Inequality Perspective

Heterogeneity in Macroeconomics: The Compositional Inequality Perspective

An agent-based model for Secular Stagnation in the USA: theory and empirical evidence

Contact Info

Product

Resources

About