Instantaneous Wealth Distribution in a Perpetual Youth Model ()
ABSTRACT
The Perpetual Youth model is widely used in macroeconomics to assess the
intergenerational effects of fiscal and monetary policy. Little attention has
been devoted to the effects in terms of instantaneous wealth distribution. In
this paper, the instantaneous non-human wealth distribution that characterizes
the steady state equilibrium of a Perpetual Youth model is assessed and, for
this scope, a Generalized Lorenz Curve of wealth distribution at the steady
state equilibrium is derived. I find that: i) an increase in interest rates
increases financial wealth concentration; ii) economies with a higher
population turnover rates exhibit lower financial wealth concentration.
Share and Cite:
Scialà, A. (2016) Instantaneous Wealth Distribution in a Perpetual Youth Model.
Modern Economy,
7, 1665-1670. doi:
10.4236/me.2016.714146.
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