THE DYNAMIC COST AND PERSISTENCE OF ASSET INEQUALITY IN AN AGRARIAN ECONOMY
| dc.creator | Carter, Michael R. | |
| dc.creator | Zimmerman, Frederic | |
| dc.date | 2017-04-01T15:32:23Z | |
| dc.date.accessioned | 2026-07-09T03:05:09Z | |
| dc.description | A growing literature suggests that inequality is economically costly. However, much of this literature depends on static analyses, begging the question of why a market system doesn't redress inequality over time if it is efficient to do so. We develop a dynamic model of asset accumulation and endogenous asset-price formation in an agrarian economy with multiple market imperfections. The model is parameterized to pre-revolutionary Nicaragua and solved numerically. The results suggest that although a free land market would eventually lead to an egalitarian land distribution, the process would take long enough, and involve sufficiently great factor-use inefficiencies along the way, that a redistributive policy would improve on the market's performance in both equity and efficiency criteria. | |
| dc.identifier | doi:10.22004/ag.econ.12644 | |
| dc.identifier | https://ageconsearch.umn.edu/record/12644/files/stpap416.pdf | |
| dc.identifier | http://ageconsearch.umn.edu/record/12644 | |
| dc.identifier.uri | http://hdl.handle.net/123456789/526201 | |
| dc.language | eng | |
| dc.publisher | ||
| dc.source | http://ageconsearch.umn.edu/record/12644 | |
| dc.title | THE DYNAMIC COST AND PERSISTENCE OF ASSET INEQUALITY IN AN AGRARIAN ECONOMY | |
| dc.type | Text |