Heterogeneity, firm entry, and distortions in networked economies
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2020-04-22
Autores
Mendes, Angelo Avelar Hermeto
Orientador(res)
Pannella, Pierluca
Cavalcanti, Tiago
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Resumo
We propose a theoretical model of occupational choice in an economy with input-output links, sectoral wedges, and heterogeneous agents. We provide analytical solutions for equilibrium objects and show that the Hulten’s theorem does not hold in our framework. We show the limiting case in which the Hulten’s theorem holds. We relate the validity of the theorem with the dispersion of entrepreneurial productivity among agents and diminishing returns to scale in the production technology. We also provide some numerical results of how wedges affect the economy.