We examine the dynamic impact of the functional distribution of income on the import demand in developed and developing countries. Drawing upon a motivating accounting structure suggesting a causal effect of the functional distribution of income in an extended version of a standard import...

The recent literature has shown that income inequality is one of the main causes of borrowing and debt accumulation by working households. This paper explores the possibility that household indebtedness is an important cause of rising income inequality. If workers experience rising debt burdens,...