Dynamic economic equilibrium under redistribution

Jess Benhabib

    Research output: Contribution to journalArticle

    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 languageEnglish (US)
    Pages (from-to)109-119
    Number of pages11
    JournalJournal of Difference Equations and Applications
    Volume13
    Issue number2-3
    DOIs
    StatePublished - Feb 2007

    Fingerprint

    Economic Equilibrium
    Redistribution
    Trade-offs
    Economics
    Tax
    Less than or equal to
    Welfare
    Taxation
    Analytical Methods
    Equality
    Arbitrary

    Keywords

    • Dynamic economics
    • Equilibrium
    • Linear production
    • Redistribution

    ASJC Scopus subject areas

    • Algebra and Number Theory
    • Analysis
    • Applied Mathematics

    Cite this

    Dynamic economic equilibrium under redistribution. / Benhabib, Jess.

    In: Journal of Difference Equations and Applications, Vol. 13, No. 2-3, 02.2007, p. 109-119.

    Research output: Contribution to journalArticle

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