using insights from the way a single representative household would behave. Heterogeneity at the micro level can jeopardize …-level heterogeneity is household size, as individuals living in multi-member households have the potential to share goods within the …

heterogeneity. We propose a new empirical method to estimate the response of consumption to permanent and transitory income shocks …

In this paper we study the evolution of income inequality for employees and self-employed workers. We highlight the … importance of separately analyzing these different sources of income to gain a broader understanding of inequality. Using Spanish … permanent and a transitory component. We find that there are noticeable differences in the evolution of income inequality, as …

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 …

inequality between 1968 and 2010. In particular, we refer to changes in the tax system due to changes in the tax code as active …