Customer Reviews

Economic Growth with Income and Wealth Distribution

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Zhang offers many models of growth in a modern economy, covering several aspects. Maybe the most interesting to some readers is the treatment of human capital and knowledge. Here, there are some very simple models. Like an economy with one production sector and one education sector. Where the latter represents principally a university, but could also be a proxy that includes other levels of education. So we proceed to a model with endogenous human capital, and see how production and consumption might result from various equations.

Another key topic studied is whether inequality in income might persist, leading to povery traps.

The models are simulated numerically, using standard computational methods. Nothing too difficult. Overall, the models offer promise. Though of course, modelling could go on forever. There is relatively little tie-in to actual economic data.