The dynamics of wealth inequality under endogenous fertility: A remark on the Barro-Becker model with heterogenous endowments
نویسندگان
چکیده
Several contributions have already pointed out that initial wealth inequalities do persist in the long run in the Ramsey model with heterogenous agents. We show that this result is not robust to the introduction of endogenous fertility. Our argument builds on the Barro-Becker (1989) seminal model extended to allow for heterogenous agents with different capital endowments. Strikingly enough, individual consumption levels, fertility rates and capital stocks are shown to be equalized after only one adjustment period. This property is shown to hold irrespective of the production sector specification. JEL classification: D31, J13, 041.
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