wealth inequality. Using estimates of the earnings processes for each group to calibrate the model, we find wealth inequality … within and between the groups that is consistent with the data. Moreover, the predictions for overall wealth inequality are … heterogeneity generates a between-group pecuniary externality which in turn leads to the predicted differences in wealth inequality …

in the population, these savings externalities may contribute to inequality. Working with an open economy heterogenous … increase wealth inequality between the groups and within the group of the non-university educated households. We further find …

We study how income inequality affects monetary policy through the inequality-household debt channel. We design a … rate and decreasing bankruptcies during the household's debt boom phase. When inequality meets financial liberalization, a … that inequality may constrain the central bank, even when it is not explicitly targeted. …

This paper quantifies the impact of borrowing constraints on consumption and earnings inequality in a life-cycle model … inference to estimate the model parameters, and show that wealth inequality causes both placement into lower-paying jobs as well …

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 the rise of top-end inequality and its effects on household consumption …, saving, and debt for the 1920s by applying a non-standard theory of consumption, the relative income hypothesis, to the …