IDEAS home Printed from https://ideas.repec.org/a/ibf/gjbres/v6y2012i2p23-40.html
   My bibliography  Save this article

Economic Growth And Redistribution: Evidence From Dynamic Games

Author

Listed:
  • James Robert E. Sampi Bravo

Abstract

This work is based on a differential game proposed by Kelvin Lancaster. The game between two agents called workers and capitalists is based on the accumulation and redistribution of benefits among social classes concluding that cooperative outcomes outperform non-cooperative. This approach determines the optimum solution in a centralized economy as a non-cooperative game and cooperative Pareto solutions forced by the social planner. We compare the model solution in a decentralized economy, where rates economic growth are converging to a steady state and obtain high rates of inflation, and higher levels of consumption. Alternatively, the cooperative solution found between agents can be confirmed. A capitalist game continues to monitor the cooperative principle, in which the maximum benefit is obtained through cooperation.

Suggested Citation

  • James Robert E. Sampi Bravo, 2012. "Economic Growth And Redistribution: Evidence From Dynamic Games," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 6(2), pages 23-40.
    • Handle: RePEc:ibf:gjbres:v:6:y:2012:i:2:p:23-40
    as

    Download full text from publisher

    File URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v6n2-2012/GJBR-V6N2-2012-3.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hoel, Michael, 1978. "Distribution and Growth as a Differential Game between Workers and Capitalists," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 19(2), pages 335-350, June.
    2. Pohjola, Matti, 1983. "Nash and stackelberg solutions in a differential game model of capitalism," Journal of Economic Dynamics and Control, Elsevier, vol. 6(1), pages 173-186, September.
    3. Rebelo, Sergio, 1991. "Long-Run Policy Analysis and Long-Run Growth," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 500-521, June.
    4. de Zeeuw, Aart, 1992. "Note on 'Nash and Stackelberg solutions in a differential game model of capitalism'," Journal of Economic Dynamics and Control, Elsevier, vol. 16(1), pages 139-145, January.
    5. Seierstad, Atle, 1993. "The dynamic efficiency of capitalism," Journal of Economic Dynamics and Control, Elsevier, vol. 17(5-6), pages 877-886.
    6. Lancaster, Kelvin, 1973. "The Dynamic Inefficiency of Capitalism," Journal of Political Economy, University of Chicago Press, vol. 81(5), pages 1092-1109, Sept.-Oct.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. C. González-Alcón & J. Sicilia & J. A. Álvarez, 1999. "Nash Equilibria in a Differential Game of Economic Growth," Journal of Optimization Theory and Applications, Springer, vol. 103(2), pages 337-357, November.
    2. Rehme, G., 1997. "Economic Growth, (Re-)Distributive Policies, Capital Mobility and Tax Competition in Open Economies," Economics Working Papers eco97/24, European University Institute.
    3. Dai, Darong, 2012. "Comparative Studies on Cooperative Stochastic Differential Game and Dynamic Sequential Game of Economic Maturity," MPRA Paper 44339, University Library of Munich, Germany.
    4. Jorge Navas & Jesús Marín-Solano, 2008. "Interactions between government and firms: a differential game approach," Annals of Operations Research, Springer, vol. 158(1), pages 47-61, February.
    5. Soto Torres, M.D. & Macarro Heredia, M.J., 1997. "Consumo privado, inversión pública e impuestos en una solución no cooperativa," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 8, pages 163-189, Diciembre.
    6. Krawczyk, Jacek B. & Shimomura, Koji, 2003. "Why countries with the same technology and preferences can have different growth rates," Journal of Economic Dynamics and Control, Elsevier, vol. 27(10), pages 1899-1916, August.
    7. Sadik-Zada, Elkhan Richard, 2023. "Resource rents, savings behavior, and scenarios of economic development," Resources Policy, Elsevier, vol. 81(C).
    8. Jesus Marin-Solano & Jorge Navas, 2009. "A note on the coincidence between Stackelberg and Nash equilibria in a differential game between government and firms," Working Papers in Economics 214, Universitat de Barcelona. Espai de Recerca en Economia.
    9. Koji Akimoto, 2014. "A Fundamental Cause of Economic Crisis―A Macro-economic Game between the Real Economic Sector and Monetary Sector," International Journal of Economic Sciences, Prague University of Economics and Business, vol. 2014(4), pages 01-37.
    10. Pierre Cahuc & Anne Bauer, 1989. "Conflits, inefficience du capitalisme et politique économique," Revue Économique, Programme National Persée, vol. 40(4), pages 621-648.
    11. Julio Huato, 2023. "Inequality and Growth: A Two-Player Dynamic Game with Production and Appropriation," Papers 2304.01855, arXiv.org.
    12. Elkhan Richard Sadik-Zada, 2020. "Distributional Bargaining and the Speed of Structural Change in the Petroleum Exporting Labor Surplus Economies," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 32(1), pages 51-98, January.
    13. Gradus, R.H.J.M. & de Zeeuw, A.J., 1989. "Corporate tax rate policy and public and private employment," Discussion Paper 1989-10, Tilburg University, Center for Economic Research.
    14. Coloma, German, 1999. "Capital accumulation and income distribution as the outcome of a dynamic game," Journal of Economic Dynamics and Control, Elsevier, vol. 23(8), pages 1177-1196, August.
    15. Tornell, Aaron, 1997. "Economic Growth and Decline with Endogenous Property Rights," Journal of Economic Growth, Springer, vol. 2(3), pages 219-250, September.
    16. Dai, Darong & Tian, Guoqiang, 2021. "Toward longer investment: Is an inclusive regime always better than an authoritarian one?," Economic Modelling, Elsevier, vol. 98(C), pages 41-68.
    17. Enrico Marchetti, 1999. "Dynamic Games and Growth Cycles in Unionised Economies," Working Papers in Public Economics 32, University of Rome La Sapienza, Department of Economics and Law.
    18. Aronsson, Thomas, 2004. "Social Accounting and the Public Sector," Umeå Economic Studies 644, Umeå University, Department of Economics.
    19. Elkhan Richard Sadik-Zada, 2021. "An Ode to ODA against all Odds? A Novel Game-Theoretical and Empirical Reappraisal of the Terrorism-Aid Nexus," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 49(2), pages 221-240, June.
    20. Kim Hawtrey, 1990. "Dynamic Behaviour of a Unionized Solow‐Swan Economy," The Economic Record, The Economic Society of Australia, vol. 66(2), pages 81-92, June.

    More about this item

    Keywords

    Differential game; non-cooperative game and cooperative game;

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games

    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:ibf:gjbres:v:6:y:2012:i:2:p:23-40. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Mercedes Jalbert (email available below). General contact details of provider: .

    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.