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On the Modeling of the Income Distribution Business Cycle Dynamics

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Author Info
Burkhard Heer ()

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Abstract

Empirically, the income share is procyclical for the low-income groups and acyclical for the top 5%. We find that business cycle models should consider overlapping generations and elastic labor supply in order to replicate this finding.

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File URL: http://www.cesifo-group.de/DocCIDL/cesifo1_wp1945.pdf
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Publisher Info
Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number CESifo Working Paper No. 1945.

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Date of creation: 2007
Date of revision:
Handle: RePEc:ces:ceswps:_1945

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Related research
Keywords: income distribution; business cycle; overlapping generations;

Find related papers by JEL classification:
C68 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Computable General Equilibrium Models
D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Castaneda, Ana & Diaz-Gimenez, Javier & Rios-Rull, Jose-Victor, 1998. "Exploring the income distribution business cycle dynamics," Journal of Monetary Economics, Elsevier, vol. 42(1), pages 93-130, June. [Downloadable!] (restricted)
  2. Kjetil Storesletten & Chris Telmer & Amir Yaron, 1996. "Asset Pricing with Idiosyncratic Risk and Overlapping Generations," Economics Working Papers 405, Department of Economics and Business, Universitat Pompeu Fabra, revised Jul 1999. [Downloadable!]
    Other versions:
  3. Alexander Ludwig & Dirk Krüger, 2006. "On the Consequences of Demographic Change for Rates of Returns to Capital, and the Distribution of Wealth and Welfare," MEA discussion paper series 06103, Mannheim Research Institute for the Economics of Aging (MEA), University of Mannheim. [Downloadable!]
    Other versions:
  4. Santiago Budria Rodriguez & Javier Diaz-Gimenez & Vincenzo Quadrini & Jose-Victor Rior-Rull, 2002. "Updated facts on the U.S. distributions of earnings, income, and wealth," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Sum, pages 2-35. [Downloadable!]
  5. Burkhard Heer, 2004. "Overlapping Generations Models (GAUSS)," QM&RBC Codes 138, Quantitative Macroeconomics & Real Business Cycles. [Downloadable!]
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Statistics
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