Heterogeneity, firm entry, and distortions in networked economies

Resumo

We propose a theoretical model of occupational choice in an economy with input-output links, sectoral wedges, and heterogeneous agents. We provide analytical solutions for equilibrium objects and show that the Hulten’s theorem does not hold in our framework. We show the limiting case in which the Hulten’s theorem holds. We relate the validity of the theorem with the dispersion of entrepreneurial productivity among agents and diminishing returns to scale in the production technology. We also provide some numerical results of how wedges affect the economy.

Ficha do documento

Tipo

Dissertação

Ano

2020

Instituição

Fundação Getulio Vargas

Fonte

Repositório da FGV

Idioma

Inglês

Acesso

Acesso aberto

Identificador

oai:repositorio.fgv.br:10438/29100

Temas

Economia

Palavras-chave

Occupational choiceInput-OutputHultenHeterogeneous agentsWedgesEscolha ocupacionalInsumo-produtoAgentes heterogêneosDistorçõesEconomiaProdutividade industrialRelações intersetoriaisCiclos econômicos