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In this paper, we develop and numerically solve a model of idiosyncratic labour income and idiosyncratic interest rates to predict the evolution of a wealth distribution over time. Stochastic labour income follows a deterministic growth trend and it fluctuates between a wage and unemployment...
Persistent link: https://www.econbiz.de/10012909981
In this paper, we develop and numerically solve a model of idiosyncratic labour income and idiosyncratic interest rates to predict the evolution of a wealth distribution over time. Stochastic labour income follows a deterministic growth trend and it fluctuates between a wage and unemployment...
Persistent link: https://www.econbiz.de/10011913697
Persistent link: https://www.econbiz.de/10012108771
.g. leverage and risky assets). Our estimates imply that softer monetary policy increases income inequality. …
Persistent link: https://www.econbiz.de/10013347177
A formula is derived for the social cost of carbon (SCC) that takes account of intragenerational income inequality and … intergenerational inequality aversion and for risk aversion. If growth increases (reduces) intra-generational inequality, the SDR is … lower (higher) and the SCC higher (lower) than along an inequality-neutral growth path, especially if intra-generational and …
Persistent link: https://www.econbiz.de/10013206181
This paper reframes the standard liquidity trap model by capturing the costly feedback loop between idiosyncratic risk and aggregate demand at the zero lower bound. I first show that a liquidity trap can result from excess demand for precautionary savings in times of high uncertainty. The model...
Persistent link: https://www.econbiz.de/10013104622
in wealth and health, implying persistent increases in wealth inequality that are characterised by increases in wealth … and/or with lower wealth. These changes lead to inequality in exposure to post-pandemic income risk and, in particular, an … incentivising investment in health for those with low wealth and health, it reduces health inequality and, in the short run, the …
Persistent link: https://www.econbiz.de/10012697960
Persistent link: https://www.econbiz.de/10003849939
Persistent link: https://www.econbiz.de/10012388524
This study presents estimates of multi-dimensional household inequality in Australia from the 2001-2017. Household … earnings inequality shows a decreasing trend, while inequality for household disposable income, non-durable consumption …
Persistent link: https://www.econbiz.de/10012903556