Income Distribution in a Stock-Flow-Consistent Model with Education and Technological Change

Eastern Economic Journal, Forthcoming

23 Pages Posted: 7 Aug 2010

See all articles by Stephen Kinsella

Stephen Kinsella

University of Limerick

Edward Nell

The New School - Department of Economics

Matthias Greiff

Clausthal University of Technology - Department of Economics and Business Administration

Date Written: April 5, 2010

Abstract

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.

Keywords: Inequality, Agent Based Macroeconomics, Econophysics

JEL Classification: C15, C63

Suggested Citation

Kinsella, Stephen and Nell, Edward and Greiff, Matthias, Income Distribution in a Stock-Flow-Consistent Model with Education and Technological Change (April 5, 2010). Eastern Economic Journal, Forthcoming, Available at SSRN: https://ssrn.com/abstract=1654904

Stephen Kinsella (Contact Author)

University of Limerick ( email )

Limerick
Ireland
+35361233611 (Phone)
+35361330316 (Fax)

HOME PAGE: http://stephenkinsella.net

Edward Nell

The New School - Department of Economics ( email )

Room 1116
6 East 16th Street
New York, NY 10003
United States

Matthias Greiff

Clausthal University of Technology - Department of Economics and Business Administration ( email )

Julius-Albert-Str. 2
Clausthal-Zellerfeld D-38678
Germany

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