Growth with gender-differentiated human capital and family wealth accumulation based on the Uzawa-Lucas two-sector model

2014 ◽  
Vol 36 (1) ◽  
pp. 69-94 ◽  
Author(s):  
Wei-Bin Zhang
Keyword(s):  
Human Capital ◽  
Wealth Accumulation ◽  
Sector Model ◽  
Family Wealth

scholarly journals Economic Oscillations with Endogenous Population, Human Capital and Wealth

10.26458/1521 ◽  
2015 ◽  
Vol 15 (2) ◽  
pp. 9
Author(s):  
Wei-Bin ZHANG
Keyword(s):  
Human Capital ◽  
Growth Model ◽  
Capital Accumulation ◽  
Population Change ◽  
Choice Model ◽  
Wealth Accumulation ◽  
Human Capital Accumulation ◽  
Fertility Choice ◽  
Model Studies ◽  
Sector Model

This paper demonstrates oscillations in the economic growth model with endogenous population growth and physical and human capital accumulation proposed by Zhang (2014). This study generalizes Zhang’s model by treating all the time-independent parameters as time-dependent parameters. The model is a synthesis of the Solow growth model, Uzawa-Lucas two-sector model, and the Haavelmo population model and the Barro-Becker fertility choice model. The model studies the dynamic interdependence between population change, wealth accumulation, and human capital accumulation. We simulate the model to demonstrate existence of business cycles under different periodic shocks.  

scholarly journals A synthesis of the Uzawa-Lucas model with the Walrasian-General-Equilibrium and Neoclassical-Growth theories

2013 ◽  
Vol 58 (199) ◽  
pp. 7-38
Author(s):  
Wei-Bin Zhang
Keyword(s):  
Human Capital ◽  
Capital Accumulation ◽  
Equilibrium Points ◽  
Division Of Labour ◽  
Education Sector ◽  
Perfect Competition ◽  
Wealth Accumulation ◽  
Human Capital Accumulation ◽  
Learning Abilities ◽  
Total Productivity

This paper proposes a dynamic economic model of wealth accumulation and human capital accumulation with endogenous education. It is an extension of the Uzawa-Lucas model of a heterogeneous household economy with multiple ways of human capital accumulation. In addition to learning by education in the Uzawa-Lucas model (Uzawa, 1965; Lucas, 1988), we also consider Arrow?s ?learning by producing? (Arrow, 1962) and Zhang?s ?learning by consuming? (creative learning, Zhang, 2007) in the human capital accumulation equation. The economic system consists of one production sector and one education sector. Households differ in propensity to save, to obtain education, to consume, and in learning abilities. The model describes a dynamic interdependence between wealth accumulation, human capital accumulation, and division of labour with endogenous wealth and income distribution in perfect competition. We simulate the model to demonstrate the existence of equilibrium points and the motion of the dynamic system. We also demonstrate how changes in the propensity to obtain education, the population, the propensity to save, and the education sector?s total productivity affect economic development.

scholarly journals A neoclassical growth model with endogenous birth and mortality rates

2021 ◽  
Vol 66 (231) ◽  
pp. 99-125
Author(s):  
Wei-Bin Zhang
Keyword(s):  
Gender Differences ◽  
Human Capital ◽  
Growth Model ◽  
Mortality Rates ◽  
Wealth Accumulation ◽  
Cultural Groups ◽  
General Equilibrium Theory ◽  
Birth Rates ◽  
And Gender

This study examines dynamic interdependence between different socio-cultural groups? birth rates, mortality rates, populations, wealth accumulation, and the allocation of time between work, leisure, and childcare. It emphasises the role of changes in human capital, technology, and preferences on birth and mortality rates and time allocations. The economic mechanism of wealth and income distribution is based on the Walrasian general equilibrium theory, and wealth accumulation is based on the Solow growth model. The paper uses a utility function proposed by Zhang (2015) to describe the behaviour of households. It also models group and gender differences in human capital, the propensity to have children, the propensity to use leisure time, and the efficiency of childcare. The paper uses differential equations to describe the dynamics of group differences in wealth, income, birth rates, mortality rates, and populations. I simulate a model to show the motion of the system and identify the existence of an equilibrium point. I also examine the effects on the dynamics of the economic system of changes in the propensity to have children and the propensity to save, and in gender differences in the propensity to use leisure, in human capital, and in emotional involvement in childcare.

scholarly journals An Economic Perspective on the Intergenerational Transmission of Wealth Inequality

2021 ◽  
Vol 39 (5) ◽  
pp. 391-400
Author(s):  
Kefei Lyu ◽  
Xiaoxuan Niu ◽  
Yucheng Zhou
Keyword(s):  
Intergenerational Transmission ◽  
Life Experience ◽  
Social Performance ◽  
Wealth Inequality ◽  
Wealth Accumulation ◽  
Economic Perspective ◽  
Key Factors ◽  
Family Wealth ◽  
Current Transmission ◽  
Basic Understanding

Intergenerational transmission of wealth is a long-standing component of society. With the current accelerated economic development, the forms of wealth transmission and the ways in which it affects individuals’ lives have gradually become more complicated. In this article, we explore the economic performance and basic flow patterns of intergenerational transmission. We first discuss the key factors of personal and family wealth accumulation. We then consider how social performance affects the phenomenon of intergenerational transmission and the macro-channels of the current transmission mode. Finally, while intergenerational transmission is widespread in society, its importance has not attracted widespread attention from socioeconomic researchers and this paper makes suggestions for further study of the phenom ena. Our main conclusion is that in current society, intergenerational transmission both directly and indirectly influences the lives of members of society in multiple ways, such as through income, employment and education. If a basic understanding of the phenomenon of intergenerational transmission can be established, it will assist people in making relevant decisions more scientifically and allow them to have a fairer life experience.

scholarly journals Spatial agglomeration and economic development with the inclusion of interregional tourism

2017 ◽  
Vol 62 (213) ◽  
pp. 93-128 ◽  
Author(s):  
Wei-Bin Zhang
Keyword(s):  
Economic Development ◽  
Total Factor Productivity ◽  
National Economy ◽  
Service Sector ◽  
Profit Maximization ◽  
Industrial Sector ◽  
Perfect Competition ◽  
Wealth Accumulation ◽  
Factor Productivity ◽  
Sector Model

The purpose of this paper is to extend Uzawa?s two-sector model of a national economy to an economy with any number of regions and interregional tourism. The paper studies interregional economic development with interactions between wealth accumulation, economic structure, interregional trade and tourism under assumptions of profit maximization, utility maximization, and perfect competition. The model is unique in interregional neoclassical growth theory in that it introduces endogenous tourism within a general equilibrium framework. The model is built on microeconomic foundations. It not only extends the well-known Solow growth model and the Uzawa two-sector model to a national economy with any number of heterogeneous regional economies, but also introduces tourist flows between regions. We demonstrate that the movement of the J-regional economy can be described by J+1 differential equations. We simulate the movement of a national economy with three regions. We show that the dynamic system has a unique equilibrium. We carry out comparative dynamic analysis with regard to the propensity to tour a region, the cost of travel from one region to another, the total factor productivity of a region?s industrial sector, the total factor productivity of a region?s service sector, the propensity to save, the parameters of a region?s amenity, the propensity to consume housing, and the national population. We demonstrate the dynamic effects of these changes on national GDP, wealth, and tourist patterns.

scholarly journals Do elite colleges matter? The impact on entrepreneurship decisions and career dynamics

2021 ◽  
Vol 12 (4) ◽  
pp. 1347-1397 ◽  
Author(s):  
Naijia Guo ◽  
Charles Ka Yui Leung
Keyword(s):  
Human Capital ◽  
Intergenerational Mobility ◽  
College Attendance ◽  
Self Employment ◽  
Family Wealth ◽  
Start Up ◽  
Elite College ◽  
Elite Colleges ◽  
Education Subsidy ◽  
The Impact

Elite college attendance significantly impacts students' entrepreneurship decisions and career dynamics. We find that an elite college degree is positively correlated with entrepreneurship (i.e., owning an incorporated business) but not with other self‐employment forms. Our overlapping generations model captures self‐selection in education and career choices based on heterogeneous ability and family wealth endowments over the life cycle. Our estimates show that (1) entrepreneurs and other self‐employed individuals require different types of human capital, and (2) elite colleges generate considerably more human capital gain than ordinary colleges, particularly for entrepreneurs. Distinguishing between elite and ordinary colleges improves our prediction of entrepreneurship decisions. Providing subsidies for elite colleges is more efficient than subsidizing their ordinary counterparts to encourage entrepreneurship, enhance intergenerational mobility, and enhance welfare. In contrast, although start‐up subsidy increases entrepreneurship, it does not improve their performance, and it is inferior to education subsidy in generating efficiency, equality, and intergenerational mobility.

scholarly journals Gender Discrimination, Education and Economic Growth in a Generalized Uzawa-Lucas Two-Sector Model

2014 ◽  
Vol 7 (1) ◽  
pp. 1-34
Author(s):  
Wei-Bin Zhang
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Gender Discrimination ◽  
Capital Accumulation ◽  
Growth Models ◽  
Equilibrium Points ◽  
Utilization Efficiency ◽  
Human Capital Accumulation ◽  
Sector Model ◽  
And Gender

Abstract This paper is mainly concerned with relationships between economic growth and gender discrimination in labor markets and education. Although discrimination in different fields has well been addresses and modelled in the economic literature, there are only a few growth models with endogenous wealth and human capital accumulation, gender time distribution between work, leisure and education under gender (positive or negative) discrimination. The production and economic structures, human capital accumulation are based on the Uzawa-Lucas model, while the utility function and gender division of labor, leisure time and study time are based on the model by Zhang. The model takes account of learning by education in modeling human capital accumulation. We simulate the model to demonstrate the existence of equilibrium points and motion of the national economy. We also conduct a comparative dynamic analysis in regard to changes in discrimination in the education sector, women’s propensity to stay at home, women’s propensity to receive education, women’s knowledge utilization efficiency, and the propensity to save.

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