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Technological progress and income inequality. (English) Zbl 0821.90030

Summary: This paper examines the effects of Hicks-neutral, Harrod-neutral, and Solow-neutral technological improvements on the distribution of income in an overlapping generations economy with endogenous labor supply and a bequest motive. Income inequality in this model is generated by a stochastic process representing random variations in intergenerational transfers and pure luck. The comparative dynamics analysis trace the effects of the aforementioned technological changes in each and every period after they occur. These effects depend on the nature of the technological change and on the elasticity of substitution.

MSC:

91B82 Statistical methods; economic indices and measures
93E03 Stochastic systems in control theory (general)
91B42 Consumer behavior, demand theory
91B50 General equilibrium theory
91B62 Economic growth models
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References:

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