Browsing by Autor "Hernando Zuleta"

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Bequests, Imperfections in Factor Markets, and Long-Run Inequality: A Theoretical Assessment of Piketty
(Federal Reserve Bank of St. Louis) Andrés Álvarez; Camilo Gómez; Hernando Zuleta
The book Capital in the Twenty-First Century by Thomas Piketty (2014) has renewed the public and scholar debate about wealth and income inequality. Theoretical critiques have focused their attention on a regularity pointed out by the author, namely, the growth rate of the economy is lower than the interest rate, r > g. However, two other important insights are key to understand the persistence of inequality: bequests and differences between factor prices and the marginal productivity of factors. We present an OLG model that incorporates these two elements and explores under which circumstances inequality between two social groups, rich dynasties and poor dynasties, is a long-term equilibrium result with economic growth. The model considers two goods, one essential and the other non-essential. We find that inequality between rich and poor dynasties is a long-term equilibrium when (i) the marginal productivity of labor of the essential good is bounded from above and the marginal productivity of capital in the non-essential good sector is bounded from below by a positive value; and (ii) factor remunerations are not determined by the standard economic forces of marginal product.
Bequests, Imperfections in Factor Markets, and Long-Run Inequality: A Theoretical Assessment of Piketty
(RELX Group (Netherlands), 2019) Andrés Álvarez; Camilo Gómez; Hernando Zuleta
Beyond Moral Hazard: The Effect of Firm-Level Compensation Strategies on Economic Conflict
(De Gruyter, 2009) Veneta Andonova; Hernando Zuleta
In many countries governments are helpless to prevent appropriation, whatever the degree of protection promised by the law. In this context, we use a simple model where workers can either work peacefully or join a guerrilla movement that expropriates entrepreneurs. We find one low-income, low-wage equilibrium with guerrilla activity and one peaceful, high-income, high-wage equilibrium. We show that the peaceful equilibrium can be reached if entrepreneurs implement standard remedies for the internal principal-agent problem such as efficiency wages.
Birth Rates, Factor Shares, and Growth
(RELX Group (Netherlands), 2019) Andrés Álvarez; Camilo Gómez; Hernando Zuleta; Camilo Acosta
Climate Policy and Structural Change: Evidence from Latin America
(RELX Group (Netherlands), 2025) Brigitte Castaneda Rodriguez; Hernando Zuleta
The Natural Resource Boom and the Uneven Fall of the Labor Share
(RELX Group (Netherlands), 2021) Andrés O. Dávila; Manuel Fernández Sierra; Hernando Zuleta