Redistribution Spurs Growth by Using a Portfolio Effect on Risky Human Capital
Redistribution Spurs Growth by Using a Portfolio Effect on Risky Human Capital
We demonstrate by mathematical analysis and systematic computer simulations that redistribution can lead to sustainable growth in a society. In accordance with economic models of risky human capital, we assume that dynamics of human capital is modeled as a multiplicative stochastic process which, in the long run, leads to the …