easy-to-use toolbox. Our method extends standard linearization techniques and is designed to work in cases when inequality … factor-specific productivity shocks shape dynamics of income and consumption inequality. …

save dynastically and middle income households who save for retirement. We find that inequality is reduced the higher the … efficiency and inequality: middle income households' consumption is maximal at a higher capital tax rate than high income …

We propose a theory of indebted demand, capturing the idea that large debt burdens by households and governments lower … aggregate demand, and thus natural interest rates. At the core of the theory is the simple yet under-appreciated observation … a two-agent overlapping-generations model, we find that recent trends in income inequality and financial liberalization …

heterogeneity. When altruism heterogeneity is low, income inequality follows an inverse U-shaped pattern relative to the level of … altruism, which is consistent with the cross-country Kuznets curve. When altruism heterogeneity is high, income inequality … linking economic growth and income inequality. …

for all households, and an increase in wealth inequality. Nevertheless, welfare losses are bigger for households with …

of inequality and the income level in an economy. First, present-biased envy generates the Matthew effect (the relatively …

utilitarian social welfare function yields a simple welfare measure which comprises both GDP and income inequality as measured by …

large enough to alter the inequality ranking of numerous countries. The average inflation effect we detect is almost as …

We study beliefs about wealth inequality and preferences for wealth redistribution. For this, we conduct a large … overestimate their position reduce their aversion to inequality after learning their position, while those who underestimate their …