Endogenous inequality and fluctuations in a two-country model
نویسندگان
چکیده
We study a two-country version of Matsuyama’s (Econometrica, 72, p. 853–84, 2004) world economy model. As in Matsuyama’s model, symmetry-breaking can be observed, and symmetry-breaking generates endogenously determined levels of inequality. In addition, we show that when the countries differ in population size, their interaction through credit markets may lead to persistent endogenous fluctuations.
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ورودعنوان ژورنال:
- J. Economic Theory
دوره 144 شماره
صفحات -
تاریخ انتشار 2009