The Dynamics of Wealth Inequality under Endogenous Fertility: A Remark on the Barro-Becker Model with Heterogenous Endowments

Abstract

Implicit in the seminal contribution of Barro-Becker [1], the lack of persistence of inequality in the pre- sence of endogenous fertility is one of the most striking features of the models à la Barro-Becker. In this pedagogical note, we show how to uncover and interpret the latter property using standard optimization in contrast to the dynamic programming under homogeneity usually invoked in this literature.

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Bosi, S. , Boucekkine, R. and Seegmuller, T. (2011) The Dynamics of Wealth Inequality under Endogenous Fertility: A Remark on the Barro-Becker Model with Heterogenous Endowments. Theoretical Economics Letters, 1, 3-7. doi: 10.4236/tel.2011.11002.

Conflicts of Interest

The authors declare no conflicts of interest.

References

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