An agent-based model of trickle-up growth and income inequality

We build an agent-based model to study how coordination failures, credit constraints, and unequal access investment opportunities affect inequality aggregate income dynamics. show that macroeconomic conditions are affected by distribution the features trickle-up growth Redistribution toward poorer households raises demand benefits all agents’ growth. Simulations our reproduces several stylized facts concerning social mobility. Finally, fiscal policies facilitating poor have largest impact, raising decreasing inequality, with policy timing being crucial.