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      • Theses - Department of Economics
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      Network dependent altruism and economic growth

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      Embargo Lift Date: 2018-07-21
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      Author(s)
      Çetin, Sefane
      Advisor
      Sağlam, H. Çağrı
      Date
      2016-07
      Publisher
      Bilkent University
      Language
      English
      Type
      Thesis
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      Abstract
      This thesis studies reference dependent agents in a static network where the reference point is the average behaviour in one's neighbourhood. It shows that the economy grows at a constant rate on the balanced growth path while income inequality and the speed of convergence depend on the specific network structure. For particular networks, initial inequalities remain in the long-run. However, it is also possible that depending on the location of agents, a lagged agent may surpass the ones who had higher initial human capital than her and as a result, a society that has too disperse initial distribution may admit an equilibrium in which the wealth distribution converges towards equality in the long-run. In short, in an economy at which the production depends on human capital, income inequalities can be explained by taking the network structure of the economy into account.
      Keywords
      Altruism
      Human capital
      Networks
      Reference-dependence
      Permalink
      http://hdl.handle.net/11693/30155
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      • Dept. of Economics - Master's degree 325
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