Ghiglino, Christian and Olszak-Duquenne, Marielle The impact of heterogeneity on indeterminacy. [["eprint_typename_scholarly-edition" not defined]]
Ghiglino, Christian and Olszak-Duquenne, Marielle The impact of heterogeneity on indeterminacy. [["eprint_typename_scholarly-edition" not defined]]
Ghiglino, Christian and Olszak-Duquenne, Marielle The impact of heterogeneity on indeterminacy. [["eprint_typename_scholarly-edition" not defined]]
Abstract
The aim of the paper is to explore the link between agent's heterogeneity and indeterminacy in a general equilibrium economy. The framework is provided by the two-sector growth model with technological externalities of Boldrin and Rustichini (1994) in which heterogeneous agents are introduced. We first show that the occurrence of indeterminacy depends on the distribution in labor endowments and in shares on initial capital among the agents as well as on preferences and technology. We find that the sign of the effect of heterogeneity on indeterminacy is not pinned down by the standard properties of preferences, a fact that might be surprising in view of some recent results (as in Herrendorf et al. (2000)). However, when risk aversion is a concave or a slightly convex function, the heterogeneity is a factor that opposes the external effects in generating indeterminacy.
Item Type: | ["eprint_typename_scholarly-edition" not defined] |
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Uncontrolled Keywords: | D30; D50; D90; O41; Endogenous growth; Heterogeneity; Indeterminacy; Inequalities |
Subjects: | H Social Sciences > HB Economic Theory |
Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Economics, Department of |
SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
Depositing User: | Unnamed user with email elements@essex.ac.uk |
Date Deposited: | 16 Jul 2012 18:20 |
Last Modified: | 15 Jan 2022 00:40 |
URI: | http://repository.essex.ac.uk/id/eprint/3017 |