TY - JOUR
T1 - Income distribution in a stock-flow consistent model with education and technological change
AU - Kinsella, Stephen
AU - Greiff, Matthias
AU - Nell, Edward J.
PY - 2011/12
Y1 - 2011/12
N2 - We model a macroeconomy with stock-flow consistent national accounts built from the local interactions of heterogenous agents (households, firms, bankers, and a government) through product, labor, and money markets in discrete time. We use this model to show that, without any restrictions on the type of interactions agents can make, and with asymmetric information on the part of firms and households in this economy, power-law dynamics with respect to firm size and firm age, income distribution, skill set choice, returns to innovation, and earnings can emerge from multiplicative processes originating in the labor market.
AB - We model a macroeconomy with stock-flow consistent national accounts built from the local interactions of heterogenous agents (households, firms, bankers, and a government) through product, labor, and money markets in discrete time. We use this model to show that, without any restrictions on the type of interactions agents can make, and with asymmetric information on the part of firms and households in this economy, power-law dynamics with respect to firm size and firm age, income distribution, skill set choice, returns to innovation, and earnings can emerge from multiplicative processes originating in the labor market.
KW - agent-based macroeconomics
KW - econophysics
KW - inequality
UR - http://www.scopus.com/inward/record.url?scp=78651104114&partnerID=8YFLogxK
U2 - 10.1057/eej.2010.31
DO - 10.1057/eej.2010.31
M3 - Article
AN - SCOPUS:78651104114
SN - 0094-5056
VL - 37
SP - 134
EP - 149
JO - Eastern Economic Journal
JF - Eastern Economic Journal
IS - 1
ER -
