Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/324439 
Year of Publication: 
2025
Series/Report no.: 
Cardiff Economics Working Papers No. E2025/13
Publisher: 
Cardiff University, Cardiff Business School, Cardiff
Abstract: 
This paper builds on Yang et al (2021) which analysed the effect of wealth inequality on UK economic growth in recent decades with a heterogeneous-agent growth model where agents can enhance individual productivity growth by undertaking entrepreneurship. In this supplementary note we examine whether ease of planning and infrastructure spending also contribute to productivity growth, as argued by some policymakers. The model is estimated and tested by indirect inference. The original model was not rejected in its match to the data behavioutr. We find the enhanced model contributes no improvement of the match. The model with only planning and infrastructure is strongly rejected.
Subjects: 
Heterogeneous-agent Model
Entrepreneurship
Growth
Inequality
Indirect Inference
planning
infrastructure
JEL: 
E10
O30
O40
Document Type: 
Working Paper

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