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Dynamic models and inequality. The role of the market mechanism in economic distribution. (English) Zbl 1454.91003

Contributions to Economics. Cham: Springer (ISBN 978-3-030-46312-0/hbk; 978-3-030-46313-7/ebook). vi, 179 p. (2020).
In this monograph, the author presents an in-depth study of theoretical explanation which connects observable phenomena in economic distribution and underlying theoretical principles of market mechanism. This manuscript spreads over eight chapters.
Chapter 2 (Contemporary Economics and Inequality: Introduction to Inequality, Concepts, Methods and Data; Measuring Inequality; Production Process, Attributes and Decomposition of the Output; Quantification of Global Inequality; Inequality, Growth and Other Social Phenomena) discusses basic concepts of inequality, its measuring and methods.
Chapter 3 (Growth Theories and Convergence Hypothesis: The Importance of Theory; The Solow-Swan Model; The Ramsey-Cass-Koopmans Model) is devoted to detailed consideration of the established theories that laid the foundations of converging tendencies in modern economics.
Chapter 4 (Who are Agents in Agent-Based Economic Models?: A Rational Decision-Making Process and Limits of the Behavioral Approach; Internal and External Nature of the Agent. A critical Approach) demarcates a rational decision-making process of economic agents in neoclassical theory. On the contrary to the previous chapter, it is argued that general neoclassical approach can still be, despite widely discussed weaknesses, a viable tool to understand principal issues of economic distribution.
Chapter 5 (Models of Subsistence Consumption: Linear Growth Model with Subsistence Consumption and Stone-Geary Preferences; Portfolio Choice with Time-(In)variant Subsistence and Heterogeneous Agents; Portfolio Management of Heterogeneous Agents Under Risk and Inequality Consequences) is devoted to interlining competition as the fundamental feature of the market mechanism with inequality in economic distribution.
In Chapter 6 (Models of Competition: Competition in the Schumpeterian Growth Model; Monopoly Power and Inequality; A Biomathematical Model of Resource Appropriation) three models with different viewpoints on competition are presented.
The general model of market inequality is formulated in Chapter 7 (The Dynamic Model of Market Inequality: Theoretical Context; Formulation of the Model; Market-Based Inequalities with Cobb-Douglas Agents).
The monograph is exclusively professionally written and the materials are presented in an attractive way. Another advantage of the offered book is the inclusion of a significant number of titles in the bibliography, which makes it a valuable reference for specialists working in this scientific field.

MSC:

91-02 Research exposition (monographs, survey articles) pertaining to game theory, economics, and finance
91B62 Economic growth models
91B69 Heterogeneous agent models
91G10 Portfolio theory
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