Lahiri, Amartya; Caines, Colin - Society for Economic Dynamics - SED - 2013
infinitely-lived agents. Our main point of departure from the standard exogenous growth neoclassical model is that we endow … with the standard recursive preference specification is that it is inconsistent with balanced growth. The existence of … balanced growth requires homothetic preferences. However, under homothetic preferences, the asymptotic wealth distribution in …