How Do the Richest 1% Owns 50% of Wealth in a Small-Open Growth Model with Endogenous Wealth and Human Capital.
This paper extends the growth model for a closed national economy by Zhang (2015) to a small-open economy. We attempt to explain some economic mechanisms of how the richest one per cent of the population own 50% of national wealth. We consider endogenous wealth and human capital accumulation by hete...
| Publicado en: | Academicus no. 15; pp. 94 - 116 |
|---|---|
| Autor principal: | |
| Formato: | Artículo |
| Publicado: |
Academicus
2017
|
| Materias: | |
| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=hlh&AN=120526134&site=ehost-live header: @attributes: shortDbName: hlh uiTerm: 120526134 longDbName: Humanities International Complete uiTag: AN controlInfo: bkinfo: jinfo: jid: 20793715 BK4T jtl: Academicus issn: 20793715 maglogo: N pubinfo: dt: 2017 iid: 15 pid: 68858 pub: Academicus artinfo: ui: 120526134 ppf: 94 ppct: 22 formats: fmt: @attributes: type: P size: 8MB tig: atl: How Do the Richest 1% Owns 50% of Wealth in a Small-Open Growth Model with Endogenous Wealth and Human Capital. aug: au: Wei-Bin Zhang affil: Ritsumeikan Asia Pacific University, Japan su: Mathematical models of economic development Human capital Learning ability Comparative studies Consumption (Economics) sug: subj: Mathematical models of economic development Human capital Learning ability Comparative studies Consumption (Economics) keyword: heterogeneous households inequality and growth learning by consuming small-open economy wealth and income distribution ab: This paper extends the growth model for a closed national economy by Zhang (2015) to a small-open economy. We attempt to explain some economic mechanisms of how the richest one per cent of the population own 50% of national wealth. We consider endogenous wealth and human capital accumulation by heterogeneous households with different preferences and learning abilities as the main determinants of growth and inequality. We describe the production technologies and economic structure on the basis of the Uzawa two-sector model. By applying Zhang's concept of disposable income and approach to household behavior, we describe consumers' wealth accumulation and consumption behavior. We model human capital accumulation on the basis of Arrow's learning by doing and Zhang's creativity with leisure. We simulate the model with three groups of the population, the rich 1%, the middle 69%, and the poor 20%. We demonstrate the existence of an equilibrium point at which the rich 1% own more than half of the national wealth and the poor 20% less than 10% of the national wealth. We show how the system moves to the equilibrium from an initial state and confirm that the equilibrium point is stable. We also conduct comparative dynamic analysis. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: Y custom: Copyright of Academicus is the property of Academicus and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. item: Academicus holder: Academicus dt: @attributes: year: 2017 holdings: @attributes: islocal: N |
|---|