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Article Dans Une Revue Economic Modelling Année : 2023

An agent-based model of trickle-up growth and income inequality

Elisa Palagi
Andrea Roventini
  • Fonction : Auteur
Jean-Luc Gaffard
  • Fonction : Auteur

Résumé

We build an agent-based model to study how coordination failures, credit constraints, and unequal access to investment opportunities affect inequality and aggregate income dynamics. We show that macroeconomic conditions are affected by income distribution and that the model features trickle-up growth dynamics. Redistribution toward poorer households raises demand and benefits all agents’ income growth. Simulations show that our model reproduces several stylized facts concerning income inequality and social mobility. Finally, fiscal policies facilitating access to investment opportunities by poor households have the largest impact, raising income and decreasing inequality, with policy timing being crucial.
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Dates et versions

hal-04531031 , version 1 (03-04-2024)

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Elisa Palagi, Mauro Napoletano, Andrea Roventini, Jean-Luc Gaffard. An agent-based model of trickle-up growth and income inequality. Economic Modelling, 2023, 129, pp.106535. ⟨10.1016/j.econmod.2023.106535⟩. ⟨hal-04531031⟩

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