TY  - GEN
AB  - This paper investigates the effects of total factor productivity and energy price
shocks in a real business cycle (RBC) model with heterogeneous agents. It extends
standard RBC models by including the distinction between durable goods and
non-durable goods but also including energy in production of non-durable goods.
Furthermore, we combine two sources of heterogeneity using idiosyncratic shocks in
labor supply and limited asset market participation by a fixed proportion of agents.
We study to what degree the empirically observed inequality in income and wealth
can be explained by the provided framework. The model can predict the evolution
of inequality in income and wealth, unlike traditional homogeneous macroeconomic
models with a representative agent. We show that the distinction between nondurable
and durable goods leads to a significant improvement in predicting most of
the moments close to the one in observational data from Germany. Furthermore,
we find that energy price shocks lead to decreasing inequalities, with respect to
both income and wealth. In a brief policy analysis, we give an outlook about the
effects of redistribution of income between classes of agents.
DA  - 2019
DO  - 10.4119/unibi/2939681
LA  - eng
PY  - 2019
SN  - 2196-2723
TI  - Heterogeneity in an RBC Model with Durable Goods and Energy
UR  - https://nbn-resolving.org/urn:nbn:de:0070-pub-29396815
Y2  - 2024-11-22T01:49:59
ER  -