Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5099211 | Journal of Economic Dynamics and Control | 2009 | 13 Pages |
Abstract
This paper considers heterogeneities in preferences over the local public good, human capital formation, and residential locations as primary underlying forces of economic stratification in an endogenously growing economy. We construct a two-period overlapping-generations model with two regions and various forms of human capital externalities where altruistic agents determine intertemporal allocation of time, investment in a child's education and residential location. We fully characterize a balanced growth equilibrium with no migration across generations to elaborate on how changes in preference, human capital accumulation, production, and interregional commuting parameters may affect the equilibrium stratification outcome in the long run.
Related Topics
Physical Sciences and Engineering
Mathematics
Control and Optimization
Authors
Been-Lon Chen, Shin-Kun Peng, Ping Wang,