The economic market outcomes and income distribution when capital is not homogeneous

" Capital Market Risk and the Dynamics of the Income Distribution "

This paper introduces a dynamic model of the wealth distribution with aggregate risk in the capital market; the model combines credit rationing and portfolio selection decisions. In a closed economy the long-run behaviour of wealth is independent of the initial income distribution when there is aggregate uncertainty, although further restrictions are necessary when there is no aggregate uncerta...

Interaction Of Income Distribution, Taxes And Economic Growth

On The Moments Of The Time To Ruin Distribution When The Initial Reserve Is Large And Claim Amount Distribution Is Two Stage Hypo Exponential Distribution

In any classical risk model one of the important random variable is time to ruin. As time to ruin warns the management for possible adverse situations that may arise, the distribution of time to ruin place a vital role in the day to day transactions of the any insurance company. Moments of the distribution are also important as coefficient of skewness of the distribution is very important in ac...

www.econstor.eu Capital Market Frictions and Economic Geography

The field of New Economic Geography (NEG) aims at explaining agglomeration based on increasing returns, monopolistic competition and international factor mobility. Deviating from existing approaches, this paper constructs a theoretical model based on capital market frictions. Firms compete monopolistically, but are lead by managers subject to moral hazard. Incentivizing managers is cheaper in r...

Human Capital and Income Distribution Dynamics

The paper assumes a continuum of two period-lived agents; agents are identical except for the inherited income. Young agents optimally allocate their inherited income between consumption and investment in human capital in a stochastic environment. In the second period they receive a wage proportional to the accumulated human capital and invest in o®spring. Two main results are provided: a low e...