Was the increase in income inequality in the US due to permanent shocks or merely to an increase in the variance of transitory shocks? The implications for consumption and welfare depend crucially on the answer to this question. We use CEX repeated cross-section data on consumption and income to...

Was the increase in income inequality in the US due to permanent shocks or merely to an increase in the variance of transitory shocks? The implications for consumption and welfare depend crucially on the answer to this question. We use CEX repeated cross-section data on consumption and income to...

Was the increase in income inequality in the US due to permanent shocks or merely to an increase in the variance of transitory shocks? The implications for consumption and welfare depend crucially on the answer to this question. We use CEX repeated cross-section data on consumption and income to...

There is vast literature examining how households’ income and consumption change over the life cycle. These studies, however, are usually restricted to developed economies. The main objective of this paper is to add to this literature by investigating the life cycle profiles and relative...

Income mobility is often thought to equalize permanent incomes and thereby to improvesocial welfare. The welfare analysis of mobility often fails, however, to account for the cost ofthe variability of periodic incomes around permanent incomes. This paper assesses the netwelfare benefit of...

How do different components of the tax and transfer systems affect disposable incomeinequality? This paper explores the redistributive effects of different tax benefit instruments inthe enlarged EU based on two approaches. Inequality analysis based on the standardapproach suggests that benefits...

This paper proposes a new unified theory of sociobehavioral forces. The goal of the new theory isto integrate theories describing five sociobehavioral processes - comparison (including justiceand self-esteem), status, power, identity, and happiness - bringing under a single theoreticalumbrella...

This paper develops a framework for studying individuals ideas about what constitutes justcompensation for chief executive officers (CEOs) and reports estimates of just CEO pay andthe principles guiding ideas of justice. The sample consists of students pursuing a Master ofBusiness Administration...

In spite of there being few elements of tax or cash benefit systems in developed countriesthat are any longer explicitly gender-biased in a discriminatory sense, it is well recognisedthat they have significant gender effects. To the extent that women earn less than men onaverage under...

We analyze the distribution and concentration of market incomes in Germany in the period1992 to 2001 on the basis of an integrated data set of individual tax returns and the GermanSocio-Economic Panel. The unique feature of this integrated data set is that it encompassesthe whole spectrum of the...