This paper explores the role of consumption externalities in a neoclassical growth model in which households have heterogeneous preferences. We fi?nd that the degree of conformism in consumption held by each household signifi?cantly affects the speed of convergence of the aggregate economy as...

Assessments of social welfare do not usually take into account population sizes. This can lead to serious social evaluation flaws, particularly in contexts in which policies can affect demographic growth. We develop in this paper a littleknown though ethically attractive approach to correcting...

This paper defines and evaluates a new tax method based on the combination of a flat rate scheme and increasing personal allowances on the tax base which we refer to as the Discretionary Income Tax Method (DITM), and compares this to the traditional personal income tax based on progressive tax...

As a proxy for a Pareto-efficient market economy, we adopt the two-party Nash Bargaining model featuring a qualitative bias in the treatment of the contributions of the parties. The Piketty inequality here is the share in total welfare accruing to the richer party over total welfare attained at...

Existing empirical research on consumption patterns of the South African black middle class leans either on the theory of conspicuous consumption or culture-specific utility functions. This paper departs from treatment of the black middle class as a homogenous group. By differentiating between a...

This paper quantifies the welfare effects of the aggregate house price collapse during the U.S. Great Recession for leveraged and un-leveraged U.S. households. We calibrate a dynamic general equilibrium model to the U.S. economy and simulate the 2007-2009 Great Recession as a contemporaneous...

In this study, using the 2003 Turkish Household Budget Survey, we investigate the lifecycle profiles of household income and its components by educational attainment, compare these profiles with those reported for various developed and developing countries, and interpret our findings within the...

Gelir eşitsizliği ile sağlık çıktıları arasındaki ilişki ağırlıklı bir şekilde gelişmiş ülkelerde çalışılmış bir konudur. Gelir eşitsizliği hipotezi bireylerin sağlık statülerinin gelirden bağımsız olarak yaşadıkları toplumdaki gelir eşitsizliğinden olumsuz...

After increasing over more than a decade, recent studies based on household surveys data show that income inequality in Uruguay started to decline in 2008. In this study we assess whether this trend is robust to the use of novel micro-data from the recently restored Uruguayan personal income tax...

The purpose of this study is to analyze the evolution of income inequality in Uruguay in 1986-2009 and its main driving forces. During 1986-1994 inequality remained almost unchanged, whearas it grew in 1994-2007 and startd to fall in 2007-2009. We carry out an inequality decomposition by income...