In this paper we deal with the problem of axiomatizing the preference relations modelled through Choquet integral with respect to a k-additive capacity, i.e. whose Möbius transform vanishes for subsets of more than k elements. Thus, k-additive capacities range from probability measures (k = 1) to general capacities (k = n). The axiomatization is done in several steps, starting from symmetric 2-...

This paper adopts the “Rip Van Winkle” stratagem, of asking what differences would be noticed, in the domain of poverty and distribution, by someone who fell asleep in 1987 (the year I published my paper on poverty in the IMF Staff Papers, and woke up only in 2007 (the year I visited the IMF to work on the present paper). I highlight, somewhat idiosyncratically, ten such differences under three...

This article analyzes the impact of stochastic skill-biased technological change on earnings inequality in a general equilibrium OLG model. Wage dispersion is determined by the heterogeneity of skills by allowing for productivity differences due to education, ability, and age. The model performs well in reproducing stylized facts on the time pattern of the U.S. wage distribution and human capit...

This study examines empirically the impact of income polarization on economic growth in an unbalanced panel of more than 70 countries during the 1960–2005 period. We calculate various polarization indices using existing micro-level datasets, as well as datasets reconstructed from grouped data on income distribution taken from the World Income Inequality Database. The results garnered for our pr...

The incompatibility between the Pareto indifference criterion and a concern for greater equality in living standards of heterogenous populations (see, amongst others, Ebert, 1995, 1997, Ebert and Moyes, 2003 and Shorrocks, 1995) might come as a surprise, since both principles are reconcilable when people differ only in income (homogenous population). We present two families of welfare rankings ...

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, ind...

We use a firm-CEO assignment framework to model the market for CEO effective labor. In the model’s equilibrium more talented CEOs match with and supply more effort to larger firms. Taxation of CEO incomes affects the equilibrium pricing of CEO effective labor and, hence, spills over and affects firm profits. Absent the ability to tax profits or a direct concern for firm owners, a standard presc...

I compare the predictions of two types of dynastic models for the persistence of wealth across generations: models that focus on uninsurable risk and intergenerational consumption smoothing but abstract from the fertility decision, such as Loury and Laitner, and models without risk that focus on the fertility decision, such as Becker and Barro. I show that when both uninsurable risk and fertili...

Families’ economic wealth is a resource that can provide children with crucial advantages early in their lives. Prior research identified substantial variation of levels between different family types from single-parent families being most disadvantaged. The causes this disadvantage, how much the disadvantage varies and non-resident parents’ may potentially reduce remain unclear. To address the...

Bu çalışmada, OECD ülkelerinde gelir dağılımı ve tüketim harcamaları incelenmektedir. çerçevede 34 ülkesini 1970-2021 dönemini kapsayan veri seti kullanılmıştır. Çalışmada hem içsellik problemini gidermek de uzun dönemde dinamik süreci daha iyi açıklayabilmek amacıyla “Dinamik panel veri” tekniği uygulanmıştır. Buna ek olarak, söz konusu ilişki üç farklı göstergesi üzerinden incelenmiştir. saye...