Showing 1 - 10 of 631
A dynamic stochastic model of global equilibrium, where countries outside the U.S. face higher risk than the U.S. itself, predicts current account surpluses in the RoW and U.S. deficits. With Loss Aversion, such precautionary savings can cause substantial 'global imbalances', particularly if...
Persistent link: https://www.econbiz.de/10012732682
This paper reviews analytically and empirically the links between income distribution and aggregate saving. Consumption theory brings out a number of direct channels through which income inequality can affect overall household saving — positively in most cases. However, recent...
Persistent link: https://www.econbiz.de/10012947113
A large body of microeconomic evidence supports Friedman (1957)'s proposition that household income can be reasonably well described as having both transitory and permanent components. We show how to modify the widely-used macroeconomic model of Krusell and Smith (1998) to accommodate such a...
Persistent link: https://www.econbiz.de/10013034318
We incorporate the division of income between capital and labor into analysis on the relationship between inequality and growth. Using historical data, we document that changes in the top 1 % income shares are positively associated with subsequent growth of per capita GDP when the capital share...
Persistent link: https://www.econbiz.de/10013239632
This paper compares changes in relative and absolute wealth concentrations to establish if both processes have followed similar trajectories. The findings indicate that while the level of relative wealth concentration has increased recently, it is not extraordinarily high in an historical...
Persistent link: https://www.econbiz.de/10013058863
This paper investigates the channels through which the middle class may matter for consumption growth and development. Determinants of the size and the growth of the middle class are also examined. Using several different middle class measures and a panel of 72 developing countries spanning the...
Persistent link: https://www.econbiz.de/10013126052
There has been much recent research on the world distribution of income, but also growing recognition of the importance of other contributions to well-being, including those of household wealth. Wealth is important in providing security and opportunity, particularly in poorer countries that lack...
Persistent link: https://www.econbiz.de/10009011700
We develop a three-country, stock-flow consistent macroeconomic model to study the effects of changes in both personal and functional income distribution on national current account balances. Each country has a household sector and a non-household (corporate) sector. The household sector is...
Persistent link: https://www.econbiz.de/10010201629
There is a growing literature comparing the current financial crisis or Great Recession to the worst economic crisis of capitalism, the Great Depression. However, the role of rising income inequality, which has risen dramatically before both crises, is rarely discussed. In this paper we discuss...
Persistent link: https://www.econbiz.de/10011289390
Persistent link: https://www.econbiz.de/10003664171