Bernon, Bastien; Konings, Jozef; Magerman, Glenn - International Research Conference on Household … - 2022
We develop a quantitative framework in which income inequality arises endogenously in response to productivity shocks … inequality and welfare up to first- and second order. Inequality arises in equilibrium due to a combination of changes in income …-improving policies can have strong effects on both welfare and inequality, but the impact is both quantitatively and qualitatively …