IDEAS home Printed from https://ideas.repec.org/a/edt/jsserr/v4y2017i2p6-41.html
   My bibliography  Save this article

Global Business Cycles with Real Shocks in a General Equilibrium Trade Model with Endogenous Human Capital

Author

Listed:
  • Wei-Bin Zhang

    (Ritsumeikan Asia Pacific University, Japan)

Abstract

This paper generalizes the dynamic economic model of heterogeneous households built by Zhang (2015). The model tries to provide insights into the economic mechanisms of how the richest one per cent of the global population own 50% of the global wealth. It explains inequality in a purely competitive economic environment with endogenous wealth and human capital accumulation. The study simulated a case with three countries and each country with three groups of the population. It demonstrated the existence of an equilibrium point at which the rich 1% own more than half of the global wealth. This study generalizes Zhang’s model by making all the time-independent parameters as time-dependent parameters. We demonstrate how the system reacts to exogenous periodic perturbations.

Suggested Citation

  • Wei-Bin Zhang, 2017. "Global Business Cycles with Real Shocks in a General Equilibrium Trade Model with Endogenous Human Capital," Social Sciences and Education Research Review, Department of Communication, Journalism and Education Sciences, University of Craiova, vol. 4(2), pages 6-41, December.
    • Handle: RePEc:edt:jsserr:v:4:y:2017:i:2:p:6-41
    as

    Download full text from publisher

    File URL: https://sserr.ro/wp-content/uploads/2017/12/4-2-6-41.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Business cycles; exogenous shocks; inequality and global growth; trade; endogenous wealth; endogenous human capital;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:edt:jsserr:v:4:y:2017:i:2:p:6-41. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dan Valeriu Voinea (email available below). General contact details of provider: http://cis01.central.ucv.ro/litere/cadr_juridic/departament_comunicare_jurnalism_stiinte_ale_educatiei/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.