| Session | 2023 | |||||||||
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| Submission Date | 03/28/2023 | |||||||||
| Room | 6: Dublin - FIAP | |||||||||
| Date | 07/21/2023 | |||||||||
| Time | 09:00 AM | |||||||||
| Title of Session | Macroeconomics with Fiscal Fragility | |||||||||
| Organizer | Aloisio Araujo | |||||||||
| Organizer's Email Address | Email hidden; Javascript is required. | |||||||||
| Organizer's Affiliation | FGV EPGE and IMPA | |||||||||
| Organizer's Country | Brazil | |||||||||
| Additional Organizer? |
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| Second Organizer Details | ||||||||||
| Second Organizer | Juan Pablo Gama Torres | |||||||||
| Organizer's Email Address | Email hidden; Javascript is required. | |||||||||
| Organizer's Affiliation | Federal University of Minas Gerais | |||||||||
| Organizer's Country | Brazil | |||||||||
| Chairperson | Juan Pablo Gama Torres | |||||||||
| Number of Presenters | 2 | |||||||||
| Presenter #1 | ||||||||||
| Name | Juan Pablo Gama Torres | |||||||||
| Email hidden; Javascript is required. | ||||||||||
| Affiliation | Federal University of Minas Gerais | |||||||||
| Country | Brazil | |||||||||
| Title of Paper | Heterogeneous Attitudes toward Risk, Growth, and Redistribution | |||||||||
| Abstract | We develop an endogenous growth model of overlapping generations in which agents leave warm-glow bequests. There are dynasties of risk neutral investors and dynasties of risk averse investors. We start with a simple model in which risk averse investors can invest only in a safe asset while risk neutral investors, whom we often refer to as entrepreneurs, can invest in a risky asset with a higher expected return. This simple structure allows us to analytically calculate the invariant distributions of wealth holdings. We define a social welfare function for this model and calculate tax and transfer policies that maximize social welfare in the invariant distribution. We extend our results to models where (1) risk averse investors can invest in the risky asset, (2) a fraction of risk neutral parents have risk averse children and vice-versa, and (3) there is both labor and capital and endogenous wages and rental rates. | |||||||||
| Co-Authors (if applicable) |
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| Upload paper | RLOGT-2022-11-11-SAET.pdf | |||||||||
| Presenter #2 | ||||||||||
| Name | Gil Navarro | |||||||||
| Email hidden; Javascript is required. | ||||||||||
| Affiliation | FGV EPGE | |||||||||
| Country | Brazil | |||||||||
| Title of Paper | Tax Reform, firm dynamics and informality | |||||||||
| Presenter #3 | ||||||||||
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SAET
Society for the Advancement of Economic Theory
Society for the Advancement of Economic Theory