Stock-flow consistent macroeconomic model with nonuniform distributional constraint

Abstract

We report on results concerning a partially aggregated Stock Flow Consistent (SFC) macro-economic model in the stationary state where the sectors of banks and firms are aggregated, the sector of households is disaggregated, and the probability density function (pdf) of the wealth of households is exogenous, constrained by econometric data. It is shown that the equality part of the constraint can be reduced to a single constantsum equation, which relates this problem to the study of continuous mass transport problems, and to the sum of iid random variables. Existing results can thus be applied, and provide marginal probabilities, and the location of the critical point before condensation occurs. Various numerical experiments are performed using Monte Carlo sampling of the hit-and-run type, using wealth and income data for France.