The "Rajan hypothesis" : a counter-factual experiment

Matteo Coronese, Isabelle Salle

We integrate a centralized wage bargaining process into an otherwise standard DSGE model with a financial accelerator to simulate distributional shocks in the presence of financial instability. Our framework provides a counterfactual analysis of the effects of the observed decrease in the labor share when no concomitant rise in households' credit offsets the adverse effect on consumption. The result is a prolonged under-consumption recession that outweighs the initial boost in investment.

MoreLess

Year of publication:	January 8, 2018
Authors:	Coronese, Matteo ; Salle, Isabelle
Publisher:	Pisa, Italy : LEM, Laboratory of Economics and Management, Institute of Economics, Scuola Superiore Sant'Anna
Subject:	Income inequality \| Distributional shocks \| Under-consumption \| Einkommensverteilung \| Income distribution \| Schock \| Shock \| Theorie \| Theory \| Experiment

freely available

Full text |

More access options

www.lem.sssup.it

Check Google Scholar

In German libraries (KVK)

I need help

Extent:	1 Online-Ressource (circa 11 Seiten) Illustrationen
Series:	LEM working paper series. - Pisa : [Verlag nicht ermittelbar], ISSN 2284-0400, ZDB-ID 2436330-3. - Vol. 2018, 03 (January 2018)
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Graue Literatur ; Non-commercial literature ; Arbeitspapier ; Working Paper
Language:	English
Other identifiers:	hdl:10419/203056 [Handle]
Classification:	e70 ; C63 - Computational Techniques ; e03 ; E52 - Monetary Policy (Targets, Instruments, and Effects)
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10011790527