Dynamic economic equilibrium under redistribution

Jess Benhabib

doi:10.1080/10236190601069192

Dynamic economic equilibrium under redistribution

Jess Benhabib

Research output: Contribution to journal › Article › peer-review

Abstract

We characterize the equilibrium of simple dynamic economy with linear production and redistribution, where agents face arbitrary sequences of after tax returns on wealth. This allows us to study the dynamics of the distribution of wealth. We apply our analytical method to illustrate that for an agent with wealth less than or equal to the median, there may be no tradeoff between growth and equality, while there could be a tradeoff between growth and welfare.

Original language	English (US)
Pages (from-to)	107-119
Number of pages	13
Journal	Journal of Difference Equations and Applications
Volume	13
Issue number	2-3
DOIs	https://doi.org/10.1080/10236190601069192
State	Published - Feb 2007

Keywords

Dynamic economics
Equilibrium
Linear production
Redistribution

ASJC Scopus subject areas

Analysis
Algebra and Number Theory
Applied Mathematics

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10.1080/10236190601069192

Cite this

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Dynamic economic equilibrium under redistribution

Abstract

Keywords

ASJC Scopus subject areas

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