Autoren:	Birkner, Matthias Scheuer, Niklas Wälde, Klaus
Titel:	The dynamics of Pareto distributed wealth in a small open economy
Online-Publikationsdatum:	15-Feb-2024
Erscheinungsdatum:	2023
Sprache des Dokuments:	Englisch
Zusammenfassung/Abstract:	We study a small open economy with labor, capital accumulation, random death, taxation and a government budget balanced in the long run. We offer methods that provide ordinary differential equations for means and analytical expressions for densities. The latter is achieved by solving stochastic differential equations analytically and deriving the density from this solution. Starting from any distribution, the aggregate distribution converges, both on a transition path towards a steady state and on a transition path towards balanced growth, to a Pareto-distribution. We provide an intuitive economic interpretation for a stationary long-run density with an infinite mean in an economy on a balanced growth path. We also show how government tax policy can lead to non-monotonic links between the equilibrium growth rate of the economy and risk aversion of households.
DDC-Sachgruppe:	330 Wirtschaft 330 Economics
Veröffentlichende Institution:	Johannes Gutenberg-Universität Mainz
Organisationseinheit:	FB 03 Rechts- und Wirtschaftswissenschaften
Veröffentlichungsort:	Mainz
ROR:	https://ror.org/023b0x485
DOI:	http://doi.org/10.25358/openscience-10089
Version:	Published version
Publikationstyp:	Zeitschriftenaufsatz
Weitere Angaben zur Dokumentart:	Scientific article
Nutzungsrechte:	CC BY
Informationen zu den Nutzungsrechten:	https://creativecommons.org/licenses/by/4.0/
Zeitschrift:	Economic theory 76
Seitenzahl oder Artikelnummer:	607 644
Verlag:	Springer Nature
Verlagsort:	Berlin; Heidelberg; New York
Erscheinungsdatum:	2023
ISSN:	1432-0479
DOI der Originalveröffentlichung:	10.1007/s00199-022-01471-z
Enthalten in den Sammlungen:	DFG-491381577-H