Inequality assessment in a dynamic framework with heterogenous agents

Abstract We propose a method to carry out an inequality assessment in dynamic and cross-sectional framework, by applying the version of suitable index, such as Gini coefficient, function time. use our methodology setup where optimal value functions is individuals’ income flows while initial conditions characterize their level wealth. When Hamilton–Jacobi–Bellman system equations can be solved closed form, monotone path distribution established. Extending model according government intervention gives possibility study, first policy for reducing under specific exogenous target, second minimise across individuals.