Rentiers and Workers-Capitalists in a Non-Classical Model


We separate the rentier portion of the budget constraint of the representative agent from the income-plus-distributed profits segment. The former’s wealth consists exclusively of returns on government bonds, the latter’s wealth is wage income from working for firms plus the distributed profits of the latter. The non-neoclassical element is the non-imposition of the market-clearing assumption. The Barro-Ricardo theorem only applies to rentiers. The level of activity is shown to depend on the level of employment along with a set of parameters that capture the imperfect competition of the model.

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R. Correa, "Rentiers and Workers-Capitalists in a Non-Classical Model," Journal of Mathematical Finance, Vol. 3 No. 2A, 2013, pp. 11-14. doi: 10.4236/jmf.2013.32A002.

Conflicts of Interest

The authors declare no conflicts of interest.


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