Suchergebnisse

Purpose
The purpose of this paper is to infer the welfare of heterogeneous agents using a representative agent model.


Design/methodology/approach
It does so by partitioning the household into subunits and allocating consumption to each subunit proportionally to the income the subunit generates through wages and capital returns.


Findings
The author shows that for a simple dynamic general equilibrium model with immigration, the steady state utilities of these subunits correspond very closely to the utilities for an equivalent heterogeneous agent model. This is particularly true when labor–leisure decisions are made using slightly modified Euler equations.


Originality/value
More complicated models can be solved and simulated using fewer computational resources using this technique.

PurposeThe purpose of this paper is to explain the following stylized facts. First, the share of household production in total output has fallen over time as the economy has grown. Second, services as a percent of GDP have risen at the same time.Design/methodology/approachThis paper constructs an original model of growth based on Adam Smith's notions of specialization and extent of the market. Growth depends on the specialization of labor in market production and learning‐by‐doing in transactions services. It is a model of sustained, but not infinite, growth.FindingsIt is found that the model can replicate the above stylized facts for reasonable parameterizations.Originality/valueThis paper shows that it is possible to build growth models that match the historic experience without relying in unbounded growth. Models like this may be very useful in understanding the processes that drive growth.

AbstractThis paper uses a single‐sector dynamic stochastic general equilibrium model with heterogeneous households to analyse Japanese immigration policy. We examine the effects on output, consumption, factor prices, and utility. We do this for both steady states and transition paths. We find that: (a) aggregate output, investment, and consumption in Japan are likely to rise with any sort of loosening of immigration restrictions; (b) allowing more skilled immigration generates greater aggregate changes; (c) raising skilled immigration relative to unskilled immigration drives down skilled workers' wages, consumption, and utility, while cutting the skilled to unskilled immigration share has the opposite effects; and (d) such immigration policy changes have small effects compared to those that occur naturally due to business cycle fluctuations