"This paper explores the implications of economic and political inequality for the business cycle comovement of government purchases. We set up and compute a heterogeneous-agent neoclassical growth model, where households value government purchases which are financed by income taxes. A key...

This book investigates three sets of questions raised by the economic downturn, corresponding to the three sections of the book. The first concerns issues of ethics and social responsibility in economic policymaking and in business and finance; how the costs of the downturn have fallen within the...

Prevailing economic theory attributes the 2008 crash and the Great Recession that followed to low interest rates, relaxed borrowing standards, and the housing price bubble. After careful analyses of statistical evidence, however, Matthew Drennan discovered that income inequality was the decisive...