Open AccessA Discrete Heterogeneous-Group Economic Growth Model with Endogenous Leisure Time
Author(s) -
WeiBin Zhang
Publication year - 2009
Publication title -
discrete dynamics in nature and society
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.264
H-Index - 39
eISSN - 1607-887X
pISSN - 1026-0226
DOI - 10.1155/2009/670560
Subject(s) - economics , distribution (mathematics) , human capital , income distribution , endogenous growth theory , leisure time , growth model , capital (architecture) , group (periodic table) , wealth distribution , labour economics , time allocation , microeconomics , market economy , inequality , mathematics , geography , medicine , mathematical analysis , physical activity , chemistry , archaeology , organic chemistry , physical medicine and rehabilitation , management
This paper proposes a one-sector multigroup growth model with endogenous labor supply in discrete time. Proposing an alternative approach to behavior of households, we examine the dynamics of wealth and income distribution in a competitive economy with capital accumulation as the main engine of economic growth. We show how human capital levels, preferences, and labor force of heterogeneous households determine the national economic growth, wealth, and income distribution and time allocation of the groups. By simulation we demonstrate, for instance, that in the three-group economy when the rich group's human capital is improved, all the groups will economically benefit, and the leisure times of all the groups are reduced but when any other group's human capital is improved, the group will economically benefit, the other two groups economically lose, and the leisure times of all the groups are increased
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