Inequality and debt in a model with heterogeneous agents

We show that to account for the cross-sectional divergence in debt-to-income ratios in US data a DSGE model must assume a tax reallocation across the top- and bottom-income quantile of the population, rather than differential productivity growth, and low cost of access to financial intermediation.

MoreLess

Year of publication:	2014
Authors:	Ravenna, Federico ; Vincent, Nicolas
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 123.2014, 2, p. 177-182
Publisher:	Elsevier
Subject:	Inequality \| Debt \| DSGE model

More details

Type of publication:	Article
Classification:	E2 - Consumption, Saving, Production, Employment, and Investment ; E3 - Prices, Business Fluctuations, and Cycles
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011041727