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Heterogeneous Households: Monopolistic Capitalists, Entrepreneurs and Employees

  • Jonathan SwarbrickEmail author
Conference paper
Part of the Advances in Intelligent Systems and Computing book series (AISC, volume 290)

Abstract

What are the implications of an uneven distribution of welfare on optimal stabilisation policy? I build a dynamic stochastic general equilibrium model with household heterogeneity in income and consumption with which to solve optimal fiscal and monetary policy over the business cycle. I include three types of household; capitalists, entrepreneurs and workers, and endogenise the selection process between the latter two.

Keywords

limited asset market participation stabilisation policy income inequality business cycles 

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Copyright information

© Springer International Publishing Switzerland 2014

Authors and Affiliations

  1. 1.University of SurreyGuildfordUK

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