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My Cart (0)<br>Econometrica
Journal Of The Econometric Society
An International Society for the Advancement of Economic<br>Theory in its Relation to Statistics and Mathematics
Edited by: Marina Halac • Print ISSN: 0012-9682 • Online ISSN: 1468-0262
Home><br>Publications><br>Econometrica>Aspirations and Inequality
Econometrica: Mar, 2017, Volume 85, Issue 2
Aspirations and Inequality<br>https://doi.org/10.3982/ECTA13865<br>p. 489-519<br>Garance Genicot, Debraj Ray<br>This paper develops a theory of socially determined , and the interaction of those aspirations with growth and inequality. The interaction is bidirectional: economy‐wide outcomes determine individual aspirations, which in turn determine investment incentives and social outcomes. Thus aspirations, income, and the of income evolve jointly. When capital stocks lie in some compact set, steady state distributions must exhibit inequality and are typically clustered around local poles. When sustained growth is possible, initial histories matter. Either there is convergence to an equal distribution (with growth) or there is perennial relative divergence across clusters, with within‐cluster convergence. A central feature that drives these results is that aspirations that are moderately above an individual's current standard of living tend to encourage investment, while still higher aspirations may lead to frustration.
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MLA
Genicot, Garance, and Debraj Ray. “Aspirations and Inequality.” Econometrica, vol. 85, .no 2, Econometric Society, 2017, pp. 489-519, https://doi.org/10.3982/ECTA13865<br>copy
Chicago
Genicot, Garance, and Debraj Ray. “Aspirations and Inequality.” Econometrica, 85, .no 2, (Econometric Society: 2017), 489-519. https://doi.org/10.3982/ECTA13865<br>copy
APA
Genicot, G., & Ray, D. (2017). Aspirations and Inequality. Econometrica, 85(2), 489-519. https://doi.org/10.3982/ECTA13865<br>copy
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Supplemental Material
Supplement to "Aspirations and Inequality"<br>This Appendix provides supplementary material to accompany the main...