Discrete Dynamics in Nature and Society
Volume 2009 (2009), Article ID 670560, 17 pages
Research Article

A Discrete Heterogeneous-Group Economic Growth Model with Endogenous Leisure Time

Ritsumeikan Asia Pacific University, 1-1 Jumonjibaru, Beppu-Shi, Oita-Ken 874-8577, Japan

Received 5 July 2008; Revised 22 December 2008; Accepted 14 March 2009

Academic Editor: Weihong Huang

Copyright © 2009 Wei-Bin Zhang. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.


This paper proposes a one-sector multigroup growth model with endogenous labor supply in discrete time. Proposing an alternative approach to behavior of households, we examine the dynamics of wealth and income distribution in a competitive economy with capital accumulation as the main engine of economic growth. We show how human capital levels, preferences, and labor force of heterogeneous households determine the national economic growth, wealth, and income distribution and time allocation of the groups. By simulation we demonstrate, for instance, that in the three-group economy when the rich group's human capital is improved, all the groups will economically benefit, and the leisure times of all the groups are reduced but when any other group's human capital is improved, the group will economically benefit, the other two groups economically lose, and the leisure times of all the groups are increased.