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Eastern Economic Journal

, Volume 37, Issue 1, pp 134–149 | Cite as

Income Distribution in a Stock-Flow Consistent Model with Education and Technological Change

  • Stephen Kinsella
  • Matthias Greiff
  • Edward J Nell
Article

Abstract

We model a macroeconomy with stock-flow consistent national accounts built from the local interactions of heterogenous agents (households, firms, bankers, and a government) through product, labor, and money markets in discrete time. We use this model to show that, without any restrictions on the type of interactions agents can make, and with asymmetric information on the part of firms and households in this economy, power-law dynamics with respect to firm size and firm age, income distribution, skill set choice, returns to innovation, and earnings can emerge from multiplicative processes originating in the labor market.

Keywords

inequality agent-based macroeconomics econophysics 

JEL Classifications

C63 C15 

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Copyright information

© Eastern Economic Association 2010

Authors and Affiliations

  • Stephen Kinsella
    • 1
  • Matthias Greiff
    • 2
  • Edward J Nell
    • 3
  1. 1.Department of EconomicsKemmy Business School, University of Limerick, Co. LimerickLimerickIreland
  2. 2.Institute of Institutional and Innovation Economics, Faculty of Economics and Business StudiesBremenGermany
  3. 3.Department of EconomicsNew School for Social ResearchNew YorkUSA

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