Corpus ID: 54075

Economic consequences of income inequality

  title={Economic consequences of income inequality},
  author={Jason Furman and J. E. Stiglitz},
Nowhere is this separation greater than in representative agent models, which have been one of the dominant paradigms for studying business cycles, economic growth, and other macroeconomic phenomena. Not only do these models preclude us from studying the relationship between distribution and efficiency, but they also can be deeply misleading in the way they lead us to assess efficiency. Consider Robert Lucas’ (1987) calculation, based on a plausible calibration of an infinitely lived… Expand

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