In this paper we assess the empirical importance of changes in inequality on the demand for imports by examining panel data for 59 developing and developed countries for the 1970-1997 period. We find significant evidence supporting that inequality has a large influence on the demand for imports....

This paper explores the implications of the form of taxation for the size of the balanced budget multiplier in imperfectly competitive models. The authors show that the balanced budget multiplier is positive but less than unity when there is either a lump-sum or a proportional profit tax, that...

In this paper, the authors argue that the aggregate unemployment rate is a valuable measure of aggregate income uncertainty. According to the theory of precautionary saving, an increase in income uncertainty would be expected to increase saving. The authors use U.S. quarterly data on the...