Gutenberg Open Science: The dynamics of Pareto distributed wealth in a small open economy

Please use this identifier to cite or link to this item: http://doi.org/10.25358/openscience-10089

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DC Field	Value	Language
dc.contributor.author	Birkner, Matthias	-
dc.contributor.author	Scheuer, Niklas	-
dc.contributor.author	Wälde, Klaus	-
dc.date.accessioned	2024-02-15T07:27:54Z	-
dc.date.available	2024-02-15T07:27:54Z	-
dc.date.issued	2023	-
dc.identifier.uri	https://openscience.ub.uni-mainz.de/handle/20.500.12030/10107	-
dc.description.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.	en_GB
dc.language.iso	eng	de
dc.rights	CC BY	*
dc.rights.uri	https://creativecommons.org/licenses/by/4.0/	*
dc.subject.ddc	330 Wirtschaft	de_DE
dc.subject.ddc	330 Economics	en_GB
dc.title	The dynamics of Pareto distributed wealth in a small open economy	en_GB
dc.type	Zeitschriftenaufsatz	de
dc.identifier.doi	http://doi.org/10.25358/openscience-10089	-
jgu.type.contenttype	Scientific article	de
jgu.type.dinitype	article	en_GB
jgu.type.version	Published version	de
jgu.type.resource	Text	de
jgu.organisation.department	FB 03 Rechts- und Wirtschaftswissenschaften	de
jgu.organisation.number	2300	-
jgu.organisation.name	Johannes Gutenberg-Universität Mainz	-
jgu.rights.accessrights	openAccess	-
jgu.journal.title	Economic theory	de
jgu.journal.volume	76	de
jgu.pages.start	607	de
jgu.pages.end	644	de
jgu.publisher.year	2023	-
jgu.publisher.name	Springer Nature	de
jgu.publisher.place	Berlin; Heidelberg; New York	de
jgu.publisher.issn	1432-0479	de
jgu.organisation.place	Mainz	-
jgu.subject.ddccode	330	de
jgu.publisher.doi	10.1007/s00199-022-01471-z	de
jgu.organisation.ror	https://ror.org/023b0x485	-
jgu.subject.dfg	Geistes- und Sozialwissenschaften	de
Appears in collections:	DFG-491381577-H

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