I have updated my paper, "A Neoclassical Model of Pension Capitalism in Which r > g". Changes include:
- Deletion of the claim that, in general, inequality increases in a steady state when the real rate of return on finance exceeds the rate of growth.
- Deletion of states of portfolio indifference, in which the real rates of return on money and on bonds are equal, from the model.
- Addition of illustrations of the solution to the (nonlinear) model with some graphs of some state variables along dynamic equilibrium paths.
- Inclusion of a description of one method for finding such solutions numerically.
- Many minor corrections and rewording.
In general, I try to write papers so anybody, including me several months hence, can follow all the details all they want. I realize in submissions to publication, my appendices would have to be drastically shortened or deleted altogether. My typesetting of the mathematics in this paper needs modification, but it is kind to those with old eyes.