Publication
Dec 2011
This paper explores the uses of double-calibrated general equilibrium models as a decomposition tool for analyzing contributory factors in the growth and increasing wage inequality in an advanced economy (the UK) since 1979. Calibration of a model to start and end years, based upon an assumed functional form and parameter values, produces a consistent set of decompositions for both growth and inequality. Calibrated TFP growth is consistent with the results from nonparametric growth accounting. The calibration procedure also allows us to explore different exogeneity assumptions regarding capital.
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English (PDF, 22 pages, 287 KB) |
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Author | T Huw Edward, Matthias Lücke |
Series | Kiel Institute Working Papers |
Issue | 1749 |
Publisher | Kiel Institute for the World Economy |
Copyright | © 2011 Kiel Institute for the World Economy |