On Differential Savings Propensities in Two-Class Growth Models

Existence and specific characters of rentiers: a savers-spenders theory approach

“…Then, the economy is at the modified golden rule steady state which depends on the saving propensity β N of savers, but not on their proportion. Note that this result is similar to those of Kaldorian models (see Britto (1972)) but it is obtained in an endogenous…”

“…If, as Mankiw (2000a,b), we interpret degree of altruism as a degree of patience or as a propensity to save, 7 this result is consistent with the intuition of Ramsey (1928) and the findings of Becker (1980). Indeed, considering (in an heuristic way) the case where different people discount future utility at different rates, Ramsey (1928, p. 559) concluded his seminal paper as follows:…”

“…In these models (see, for instance, Kaldor (1956) or Pasinetti (1962)), it is assumed the existence in the society of an exogenous proportion of workers and rentiers (i.e., capital owners who do not work). Then, the long run equilibrium is also determined by the exclusive savings of rentiers (see Britto (1972)). The most recent macroeconomic models with rentiers are used to study stationary sunspots or/and endogenous business cycle (see, for instance, Grandmont, Pintus and de Vilder (1998) or Barinci (2001)) and are based on the finance constrained economy developed by Woodford (1986).…”

“…It may be useful to give a brief outline of the similarities and denote the differences. There are at least four reasons why our model differs from Ramsey (1928) or Becker (1980). First, in our context the individuals' labor supply is endogenous.…”

Fiscal Policy in a Growth Model with Both Altruistic and Nonaltruistic Agents

“…Our model also bears some resemblance to the Kaldorian two-class society models, where the long-run equilibrium is shown to be determined by the exclusive saving by capitalists (see Britto 1972). Finally, one can also mention a number of works linking individual heterogeneity and endogenous growth.…”