- HETEROGENEITY IN CAPITAL AND SKILLS IN A NEOCLASSICAL STOCHASTIC GROWTH MODEL

Does a heterogeneous agents version of a neoclassical model with labor-leisure choice replicatethe distributions of consumption and working hours observed in the cross-sectional data? Doesincorporating heterogeneity enhance the aggregate performance of the representative agentmodel? We address these questions in a complete market model economy with two sources ofheterogeneity: initial endowments and non-acquired skills. We find positive answers to bothquestions.

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Year of publication:	1999-12
Authors:	Maliar, Lilia ; Maliar, Serguei
Institutions:	Instituto Valenciano de Investigaciones Económicas (IVIE)
Subject:	Neoclassical model \| heterogeneous agents \| aggregation \| business cycle

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Extent:	application/pdf
Series:	Working Papers. Serie AD.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Published by Ivie 40 pages
Classification:	E32 - Business Fluctuations; Cycles ; E13 - Neoclassical
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005515958