TITLE:
The Dynamics of Wealth Inequality under Endogenous Fertility: A Remark on the Barro-Becker Model with Heterogenous Endowments
AUTHORS:
Stefano Bosi, Raouf Boucekkine, Thomas Seegmuller
KEYWORDS:
Endogenous Fertility, Heterogeneous Households, Optimal Growth
JOURNAL NAME:
Theoretical Economics Letters,
Vol.1 No.1,
June
1,
2011
ABSTRACT: Implicit in the seminal contribution of Barro-Becker [1], the lack of persistence of inequality in the pre- sence of endogenous fertility is one of the most striking features of the models à la Barro-Becker. In this pedagogical note, we show how to uncover and interpret the latter property using standard optimization in contrast to the dynamic programming under homogeneity usually invoked in this literature.