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German Consumption Inequality. An evaluation with a focus on the financial crisis

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  • Heinrichs, Katrin

Abstract

How did the financial crisis impact on German demand? Are there significant differences in consumption behaviour depending on income? We analyse consumption data from 2005 to 2012/13 and find some indication for divergence of different income categories' consumption after 2009 and for a higher real interest rate sensitivity of higher income earners' consumption. Like in studies of income and wealth inequality, we also see a slight upward trend in consumption inequality that might have briefly staggered when the financial crisis hit.

Suggested Citation

  • Heinrichs, Katrin, 2016. "German Consumption Inequality. An evaluation with a focus on the financial crisis," Annual Conference 2016 (Augsburg): Demographic Change 145891, Verein für Socialpolitik / German Economic Association.
  • Handle: RePEc:zbw:vfsc16:145891
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    References listed on IDEAS

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    1. Florian Hoffmann & Thomas Lemieux, 2016. "Unemployment in the Great Recession: A Comparison of Germany, Canada, and the United States," Journal of Labor Economics, University of Chicago Press, vol. 34(S1), pages 95-139.
    2. Grabka, Markus M., 2015. "Income and Wealth Inequality after the Financial Crisis: The Case of Germany," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 371-390.
    3. Singh, S K & Maddala, G S, 1976. "A Function for Size Distribution of Incomes," Econometrica, Econometric Society, vol. 44(5), pages 963-970, September.
    4. Nicola Fuchs-Schuendeln & Dirk Krueger & Mathias Sommer, 2010. "Inequality Trends for Germany in the Last Two Decades: A Tale of Two Countries," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 13(1), pages 103-132, January.
    5. Anthony B. Atkinson & Salvatore Morelli, 2014. "Chartbook of economic inequality," Working Papers 324, ECINEQ, Society for the Study of Economic Inequality.
    6. Stracca, Livio, 2010. "Is the New Keynesian IS curve structural?," Working Paper Series 1236, European Central Bank.
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    1. repec:gam:jijfss:v:6:y:2018:i:2:p:57-:d:150855 is not listed on IDEAS

    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D60 - Microeconomics - - Welfare Economics - - - General
    • D30 - Microeconomics - - Distribution - - - General

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