degree of heterogeneity in household preferences or beliefs is sufficient to match empirical measures of wealth inequality in … the United States. The heterogeneity-augmented model’s predictions are consistent with microeconomic evidence that … macroeconomic models (even ones including some heterogeneity). The high MPC arises because many consumers hold little wealth despite …

Was the increase in income inequality in the US due to permanent shocks or merely to an increase in the variance of … changes, transitory and permanent shocks and estimate the contribution of each to total inequality. Our model fits the joint … evolution of consumption and income inequality well and delivers two main results. First, we find that permanent changes in …

Was the increase in income inequality in the US due to permanent shocks or merely to an increase in the variance of …-cycle changes, transitory and permanent shocks and estimate the contribution of each to total inequality. Our model fits the joint … evolution of consumption and income inequality well and delivers two main results. First, we find that permanent changes in …

Was the increase in income inequality in the US due to permanent shocks or merely to an increase in the variance of …-cycle changes, transitory and permanent shocks and estimate the contribution of each to total inequality. Our model fits the joint … evolution of consumption and income inequality well and delivers two main results. First, we find that permanent changes in …

We use CEX repeated cross-section data on consumption and income, to evaluate the nature of increased income inequality … and aggregate components, and estimate the contribution of each component to total inequality. The model we use is a … that taking risk sharing into account is important for the model fit; that the increase in inequality in the 1980s was …

One might expect that rising US income inequality would reduce demand growth and create a drag on the economy because … higher-income groups spend a smaller share of income. But during a quarter century of rising inequality, US growth and … inequality could be one explanation for the stagnant recovery in the recession's aftermath. …

residential mobility? iv) Is there a link between homeownership and wealth inequality? Between inequality in housing wealth and in … distribution. Another important issue is whether housing-related policies raise potential trade-offs between equity, or inequality …