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.
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Swarbrick, J. (2014). Heterogeneous Households: Monopolistic Capitalists, Entrepreneurs and Employees. In: Omatu, S., Bersini, H., Corchado, J., Rodríguez, S., Pawlewski, P., Bucciarelli, E. (eds) Distributed Computing and Artificial Intelligence, 11th International Conference. Advances in Intelligent Systems and Computing, vol 290. Springer, Cham. https://doi.org/10.1007/978-3-319-07593-8_7
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DOI: https://doi.org/10.1007/978-3-319-07593-8_7
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-07592-1
Online ISBN: 978-3-319-07593-8
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