The standard neoclassical growth model hides income inequality behind a representative agent who has the average, per capita level of income. As a result, GDP per capita has become engrained in ...

CECILIA GARCÍA-PEÑALOSA, STEPHEN J. TURNOVSKY, Taxation and Income Distribution Dynamics in a Neoclassical Growth Model, Journal of Money, Credit and Banking, Vol. 43, No. 8 (December 2011), pp.

We explain these features in terms of a conventional neoclassical growth model-with no monetary or nominal exchange rate policy-by including two aspects of the economy explicitly in the model: (1) low ...

American Economic Journal: Macroeconomics focuses on studies of aggregate fluctuations and growth, and the role of policy in that context. Such studies often borrow from and interact with research in ...

This paper uses the standard one-sector neoclassical growth model to investigate why China's consumption has been low and investment high. It finds that the low cost of capital has been quantitatively ...

This forecast is based on two assumptions: that global growth will fall from 3% per year today to 1.5% in the second half of the century and that the global savings rate will stabilise at 10%.