ABSTRACT Implicit in the seminal contribution of Barro-Becker , the lack of persistence of inequality in the pre- sence of endogenous fertility is one of the most striking features of the models à la Barro-Becker. In this pedagogical note, we show how to uncover and interpret the latter property using standard optimization in contrast to the dynamic programming under homogeneity usually invoked in this literature.
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nullS. Bosi, R. Boucekkine and T. Seegmuller, "The Dynamics of Wealth Inequality under Endogenous Fertility: A Remark on the Barro-Becker Model with Heterogenous Endowments," Theoretical Economics Letters, Vol. 1 No. 1, 2011, pp. 3-7. doi: 10.4236/tel.2011.11002.
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