Journal article icon

Journal article

Infrastructure and inequality: insights from incorporating key economic facts about household heterogeneity

Abstract:

We study the impacts of investment in public capital on equity and efficiency. Taking into account stylized facts on wealth accumulation, we model agent heterogeneity through differences in saving behavior, income source and time preference. We find that in the long run, public investment is Pareto-improving and that it reduces inequality in wealth, welfare, and income at the same time, if it is financed by a capital tax. Consumption tax financing is also Pareto-improving but distribution-neu...

Expand abstract
Publication status:
Published
Peer review status:
Peer reviewed

Actions


Access Document


Files:
Publisher copy:
10.1017/S1365100516000432

Authors


More by this author
Institution:
University of Oxford
Division:
SSD
Department:
SOGE
Sub department:
Environmental Change Institute
Role:
Author
Publisher:
Cambridge University Press Publisher's website
Journal:
Macroeconomic Dynamics Journal website
Publication date:
2016-08-01
Acceptance date:
2016-01-01
DOI:
EISSN:
1365-1005
ISSN:
1469-8056
Source identifiers:
658216
Keywords:
Pubs id:
pubs:658216
UUID:
uuid:1efbfdd0-37fe-4843-8255-4744d787ae68
Local pid:
pubs:658216
Deposit date:
2016-11-21

Terms of use


Views and Downloads






If you are the owner of this record, you can report an update to it here: Report update to this record

TO TOP