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This paper analyzes whether China's investment and savings rates are too high by considering the rate of return to … investment and other factors. It also investigates the reasons for the rapid increase in the savings rate by using various …
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This paper contributes the on-going debate on income inequality in advanced economies with a proposal aimed at reducing costly investment mistakes that are prevalent among middle-class households. The paper starts by describing how households should invest, compares it with what we know about...
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-2007. We find that, firstly, rising personal inequality leads to a decrease of household net lending and the current account …, ceteris paribus. The effect is strong for top household income shares, but much weaker for the Gini coefficient of household …
Persistent link: https://www.econbiz.de/10010201632
We study the impact of heterogeneous saving behavior on the distributional effects of public investment. A capital tax is levied to finance productive public capital in an economy with two types of households: high income households who save dynastically and middle income households who save for...
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