Inequality and Debt in a Model with Heterogeneous Agents
We propose a DSGE model with income heterogeneity to help discriminate across competing explanations of the cross-sectional divergence in debt-to-income ratios in US data. We show that for a DSGE model to be consistent with the data, the divergence in income growth should not be anticipated and should happen in an economy with low cost of access to financial intermediation. Differential productivity growth across the top and bottom-income quantile of the population has a much smaller impact on debt accumulation by the bottom income-quantile relative to a cross-sectional tax reallocation.
|Date of creation:||2014|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (514) 987-8161
Web page: http://www.cirpee.org/
More information through EDIRC
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.:
- Hornstein, Andreas & Krusell, Per & Violante, Giovanni L., 2005.
"The Effects of Technical Change on Labor Market Inequalities,"
Handbook of Economic Growth,
in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 20, pages 1275-1370
- Hornstein, Andreas & Krusell, Per & Violante, Giovanni L, 2005. "The Effects of Technical Change on Labour Market Inequalities," CEPR Discussion Papers 5025, C.E.P.R. Discussion Papers.
- Andreas Hornstein & Per Krusell & Giovanni L. Violante, 2005. "The Effects of Technical Change on Labor Market Inequalities," Working Papers 89, Princeton University, Department of Economics, Center for Economic Policy Studies..
- Andreas Hornstein & Per Krussell & Giovanni L. Violante, 2004. "The effects of technical change on labor market inequalities," Working Paper 04-08, Federal Reserve Bank of Richmond.
- Thomas Lemieux, 2006. "Increasing Residual Wage Inequality: Composition Effects, Noisy Data, or Rising Demand for Skill?," American Economic Review, American Economic Association, vol. 96(3), pages 461-498, June.
- Matteo Iacoviello, 2008.
"Household Debt and Income Inequality, 1963-2003,"
Journal of Money, Credit and Banking,
Blackwell Publishing, vol. 40(5), pages 929-965, 08.
- Matteo Iacoviello, 2006. "Household Debt and Income Inequality, 1963-2003," 2006 Meeting Papers 585, Society for Economic Dynamics.
- Matteo Iacoviello, 2005. "Household Debt and Income Inequality, 1963-2003," Boston College Working Papers in Economics 629, Boston College Department of Economics, revised 18 Oct 2007.
- Mark Bils & Mark Aguiar, 2010.
"Has Consumption Inequality Mirrored Income Inequality?,"
2010 Meeting Papers
1334, Society for Economic Dynamics.
- Mark A. Aguiar & Mark Bils, 2011. "Has Consumption Inequality Mirrored Income Inequality?," NBER Working Papers 16807, National Bureau of Economic Research, Inc.
- Romain Ranciere & Michael Kumhof, 2011.
"Inequality, Leverage and Crises,"
2011 Meeting Papers
1374, Society for Economic Dynamics.
- Orazio Attanasio & Erik Hurst & Luigi Pistaferri, 2012.
"The Evolution of Income, Consumption, and Leisure Inequality in The US, 1980-2010,"
NBER Working Papers
17982, National Bureau of Economic Research, Inc.
- Orazio Attanasio & Erik Hurst & Luigi Pistaferri, 2014. "The Evolution of Income, Consumption, and Leisure Inequality in the US, 1980-2010," NBER Chapters, in: Improving the Measurement of Consumer Expenditures National Bureau of Economic Research, Inc.
- repec:cbo:report:42729 is not listed on IDEAS
- Dirk Krueger & Fabrizio Perri, 2006. "Does Income Inequality Lead to Consumption Inequality? Evidence and Theory -super-1," Review of Economic Studies, Oxford University Press, vol. 73(1), pages 163-193.
When requesting a correction, please mention this item's handle: RePEc:lvl:lacicr:1408. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Johanne Perron)
If references are entirely missing, you can add them using this form.