Journal Article A Consumption-Oriented Theory of the Demand for Financial Assets and the Term Structure of Interest Rates Get access J. E. Stiglitz J. E. Stiglitz Cowles Foundation, Yale University Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 37, Issue 3, July 1970, Pages 321–351, https://doi.org/10.2307/2296724 Published: 01 July 1970 Article history Received: 01 August 1968 Revision received: 01 November 1969 Published: 01 July 1970

Journal Article Non-Substitution Theorems with Durable Capital Goods Get access J. E. Stiglitz J. E. Stiglitz Cowles Foundation Yale University Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 37, Issue 4, October 1970, Pages 543–553, https://doi.org/10.2307/2296484 Published: 01 October 1970 Article history Received: 01 August 1968 Revision received: 01 November 1969 Published: 01 October 1970

I. Introduction, 25.--II. The basic model, 27.--III. Determination of the level of investment in a mean variance model, 32.--IV. Choice of technique, 47.--V. Remarks on alternative models of market equilibrium, 52.--VI. Concluding remarks, 55.--Appendix, 57.

Raaj K. Sah, Joseph E. Stiglitz; The Quality of Managers in Centralized Versus Decentralized Organizations*, The Quarterly Journal of Economics, Volume 106, Iss

Journal Article A Two-Sector Two Class Model of Economic Growth Get access J. E. Stiglitz J. E. Stiglitz Massachusetts Institute of Technology Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 34, Issue 2, April 1967, Pages 227–238, https://doi.org/10.2307/2296811 Published: 01 April 1967

In the field of economics, perhaps the most important break with the past—one that leaves open huge areas for future work—lies in the economics of information. It is now recognized that information is imperfect, obtaining information can be costly, there are important asymmetries of information, and the extent of information asymmetries is affected by actions of firms and individuals. This recognition deeply affects the understanding of wisdom inherited from the past, such as the fundamental welfare theorem and some of the basic characterization of a market economy, and provides explanations of economic and social phenomena that otherwise would be hard to understand.

I. Introduction, 263. — II. The basic model and some behavioral hypotheses, 264. — III. Wealth tax, 269. — IV. Income taxation, 270. — V. Special treatment of capital gains, 274. — VI. No loss offset, 275. — VII. Welfare implications, 279.

We begin by considering a simple model of accumulation, with a linear savings function, a constant reproduction rate, homogeneous labor, and equal division of wealth among one's heirs. In such an economy, if the balanced growth path is stable, all wealth and income is asymptotically evenly distributed, with the possible exception, in the case of negative savings at zero income, of a group with zero wealth. In the process of accumulation, there may, however, be a period during which wealth becomes less evenly distributed. We then show that the basic conclusions are unaltered under a variety of alternative savings assumptions, where savings is a function of wealth or of the distribution of income, or where savings is a nonlinear concave function of income, and that variable rates of reproduction make no difference at least to the asymptotic results. The effects of alternative taxes on the speed of equalization are investigated in Section 4, and in Section 5 we consider a simple example to see the order of magnitudes of time that are involved in the equalization process. In the remaining sections of the paper, we investigate the forces for inequality: