Download or read book Estimating the Marginal Propensity to Consume Using the Distributions of Income Consumption and Wealth written by Jonathan Fisher and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Recent studies of economic inequality almost always separately examine income, consumption, and wealth inequality and, hence, miss the important synergy among the three measures explicit in the life-cycle budget constraint. Using Panel Study of Income Dynamics data from 1999 through 2013, we examine whether these changes are more dramatic at higher or lower levels of wealth and find that the marginal propensity to consume is lower at higher wealth quintiles. This suggests that low-wealth households cannot smooth consumption as much as other households do, which further implies that increasing wealth inequality likely reduces aggregate consumption and limits economic growth.
Download or read book The Distribution of Wealth and the Marginal Propensity to Consume written by and published by . This book was released on 2014 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: We present a macroeconomic model calibrated to match both microeconomic and macroeconomic evidence on household income dynamics. When the model is modified in a way that permits it to match empirical measures of wealth inequality in the U.S., we show that its predictions (unlike those of competing models) are consistent with the substantial body of microeconomic evidence which suggests that the annual marginal propensity to consume (MPC) is much larger than the 0.02-0.04 range implied by commonly-used macroeconomic models. Our model also (plausibly) predicts that the aggregate MPC can differ greatly depending on how the shock is distributed across categories of households (e.g., low-wealth versus high-wealth households).
Download or read book Unequal We Stand written by Jonathan Heathcote and published by DIANE Publishing. This book was released on 2010-10 with total page 61 pages. Available in PDF, EPUB and Kindle. Book excerpt: The authors conducted a systematic empirical study of cross-sectional inequality in the U.S., integrating data from various surveys. The authors follow the mapping suggested by the household budget constraint from individual wages to individual earnings, to household earnings, to disposable income, and, ultimately, to consumption and wealth. They document a continuous and sizable increase in wage inequality over the sample period. Changes in the distribution of hours worked sharpen the rise in earnings inequality before 1982, but mitigate its increase thereafter. Taxes and transfers compress the level of income inequality, especially at the bottom of the distribution, but have little effect on the overall trend. Charts and tables. This is a print-on-demand publication; it is not an original.
Download or read book Income and Wealth Distribution in Macroeconomics written by Yves Achdou and published by . This book was released on 2017 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt: We recast the Aiyagari-Bewley-Huggett model of income and wealth distribution in continuous time. This workhorse model - as well as heterogeneous agent models more generally - then boils down to a system of partial differential equations, a fact we take advantage of to make two types of contributions. First, a number of new theoretical results: (i) an analytic characterization of the consumption and saving behavior of the poor, particularly their marginal propensities to consume; (ii) a closed-form solution for the wealth distribution in a special case with two income types; (iii) a proof that there is a unique stationary equilibrium if the intertemporal elasticity of substitution is weakly greater than one; (iv) characterization of "soft" borrowing constraints. Second, we develop a simple, efficient and portable algorithm for numerically solving for equilibria in a wide class of heterogeneous agent models, including - but not limited to - the Aiyagari-Bewley-Huggett model.
Download or read book Income Distribution in Macroeconomic Models written by Giuseppe Bertola and published by Princeton University Press. This book was released on 2014-09-28 with total page 440 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book looks at the distribution of income and wealth and the effects that this has on the macroeconomy, and vice versa. Is a more equal distribution of income beneficial or harmful for macroeconomic growth, and how does the distribution of wealth evolve in a market economy? Taking stock of results and methods developed in the context of the 1990s revival of growth theory, the authors focus on capital accumulation and long-run growth. They show how rigorous, optimization-based technical tools can be applied, beyond the representative-agent framework of analysis, to account for realistic market imperfections and for political-economic interactions. The treatment is thorough, yet accessible to students and nonspecialist economists, and it offers specialist readers a wide-ranging and innovative treatment of an increasingly important research field. The book follows a single analytical thread through a series of different growth models, allowing readers to appreciate their structure and crucial assumptions. This is particularly useful at a time when the literature on income distribution and growth has developed quickly and in several different directions, becoming difficult to overview.
Download or read book Liquidity Constraints and Investment in Transition Economies written by Nina Budina and published by World Bank Publications. This book was released on 2000 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: "In Bulgaria and other transition economies, liquidity constraints and hence access to external funds must be seen in the context of soft budget constraints and the financial system's failure to enforce the efficient allocation of funds. Liquidity constraints in Bulgaria may be seen as a sign of financial weakness"--Cover.
Download or read book Heterogeneity and Persistence in Returns to Wealth written by Andreas Fagereng and published by International Monetary Fund. This book was released on 2018-07-27 with total page 69 pages. Available in PDF, EPUB and Kindle. Book excerpt: We provide a systematic analysis of the properties of individual returns to wealth using twelve years of population data from Norway’s administrative tax records. We document a number of novel results. First, during our sample period individuals earn markedly different average returns on their financial assets (a standard deviation of 14%) and on their net worth (a standard deviation of 8%). Second, heterogeneity in returns does not arise merely from differences in the allocation of wealth between safe and risky assets: returns are heterogeneous even within asset classes. Third, returns are positively correlated with wealth: moving from the 10th to the 90th percentile of the financial wealth distribution increases the return by 3 percentage points - and by 17 percentage points when the same exercise is performed for the return to net worth. Fourth, wealth returns exhibit substantial persistence over time. We argue that while this persistence partly reflects stable differences in risk exposure and assets scale, it also reflects persistent heterogeneity in sophistication and financial information, as well as entrepreneurial talent. Finally, wealth returns are (mildly) correlated across generations. We discuss the implications of these findings for several strands of the wealth inequality debate.
Download or read book Weekly Weather and Crop Bulletin written by and published by . This book was released on 1994 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Measuring Distribution and Mobility of Income and Wealth written by Raj Chetty and published by University of Chicago Press. This book was released on 2022-11-16 with total page 736 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Economic research on the efficient allocation of resources has a long history. Increasingly, attention has turned to inequality in the distribution of personal resources and outcomes, and whether individuals or children are locked in their respective places in this distribution or whether mobility is possible. Research focuses not only on measuring inequality and mobility, but on understanding its historical, economic, and social determinants, and how policies might affect these distributions. This volume explores the latest developments in our understanding of income and wealth distribution and mobility. The first section addresses observed patterns of income inequality and shifts in compensation and fluidity that drive or reinforce income inequality. The next focuses on wealth inequality, including the difficulties of defining and measuring wealth. The third section presents new evidence on the intergenerational transmission of inequality and the mechanisms that sustain these patterns. A fourth set of chapters studies the mitigation of inequality, including variations in intervention strategies across time and geography. Finally, issues related to using national accounting data in comparison with survey and microdata are examined. Lack of data, particularly wealth data at the individual or household level in most countries, presents a challenge. Momentum has been building to link multiple sources of survey, administrative and other data in order to mitigate measurement problems in single sources and to provide more comprehensive data on income and wealth"--
Download or read book Income Polarization in the United States written by Ali Alichi and published by International Monetary Fund. This book was released on 2016-06-28 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper uses a combination of micro-level datasets to document the rise of income polarization—what some have referred to as the “hollowing out” of the income distribution—in the United States, since the 1970s. While in the initial decades more middle-income households moved up, rather than down, the income ladder, since the turn of the current century, most of polarization has been towards lower incomes. This result is striking and in contrast with findings of other recent contributions. In addition, the paper finds evidence that, after conditioning on income and household characteristics, the marginal propensity to consume from permanent changes in income has somewhat fallen in recent years. We assess the potential impacts of these trends on private consumption. During 1998-2013, the rise in income polarization and lower marginal propensity to consume have suppressed the level of real consumption at the aggregate level, by about 31⁄2 percent—equivalent to more than one year of consumption.
Download or read book Statistical Matching written by Marcello D'Orazio and published by John Wiley & Sons. This book was released on 2006-03-30 with total page 268 pages. Available in PDF, EPUB and Kindle. Book excerpt: There is more statistical data produced in today’s modern society than ever before. This data is analysed and cross-referenced for innumerable reasons. However, many data sets have no shared element and are harder to combine and therefore obtain any meaningful inference from. Statistical matching allows just that; it is the art of combining information from different sources (particularly sample surveys) that contain no common unit. In response to modern influxes of data, it is an area of rapidly growing interest and complexity. Statistical Matching: Theory and Practice introduces the basics of statistical matching, before going on to offer a detailed, up-to-date overview of the methods used and an examination of their practical applications. Presents a unified framework for both theoretical and practical aspects of statistical matching. Provides a detailed description covering all the steps needed to perform statistical matching. Contains a critical overview of the available statistical matching methods. Discusses all the major issues in detail, such as the Conditional Independence Assumption and the assessment of uncertainty. Includes numerous examples and applications, enabling the reader to apply the methods in their own work. Features an appendix detailing algorithms written in the R language. Statistical Matching: Theory and Practice presents a comprehensive exploration of an increasingly important area. Ideal for researchers in national statistics institutes and applied statisticians, it will also prove to be an invaluable text for scientists and researchers from all disciplines engaged in the multivariate analysis of data collected from different sources.
Download or read book Preparing for an Aging World written by National Research Council and published by National Academies Press. This book was released on 2001-06-26 with total page 326 pages. Available in PDF, EPUB and Kindle. Book excerpt: Aging is a process that encompasses virtually all aspects of life. Because the speed of population aging is accelerating, and because the data needed to study the aging process are complex and expensive to obtain, it is imperative that countries coordinate their research efforts to reap the most benefits from this important information. Preparing for an Aging World looks at the behavioral and socioeconomic aspects of aging, and focuses on work, retirement, and pensions; wealth and savings behavior; health and disability; intergenerational transfers; and concepts of well-being. It makes recommendations for a collection of new, cross-national data on aging populationsâ€"data that will allow nations to develop policies and programs for addressing the major shifts in population age structure now occurring. These efforts, if made internationally, would advance our understanding of the aging process around the world.
Download or read book Marginal Propensity to Consume with a Negative Wealth Constraint written by Seyoung Park and published by . This book was released on 2017 with total page 17 pages. Available in PDF, EPUB and Kindle. Book excerpt: There exists one potential source which has not obtained full treatment in the recent consumption literature: a negative wealth constraint (NWC). An economic agent who faces the NWC can borrow up to a certain proportion of the present value of labor income. We present an analytically tractable consumption-savings and investment model with the NWC. The model can prove one important result: consumption is strictly concave with wealth (Carroll and Kimball, 1996) even when labor income is perfectly riskless. More interestingly, the higher marginal propensity to consume out of financial wealth obtains with the tighter NWC.
Download or read book Studies in the Distribution of Household Wealth written by Edward N. Wolff and published by . This book was released on 1993 with total page 280 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Color of Wealth written by Barbara Robles and published by The New Press. This book was released on 2006-06-05 with total page 337 pages. Available in PDF, EPUB and Kindle. Book excerpt: For every dollar owned by the average white family in the United States, the average family of color has less than a dime. Why do people of color have so little wealth? The Color of Wealth lays bare a dirty secret: for centuries, people of color have been barred by laws and by discrimination from participating in government wealth-building programs that benefit white Americans. This accessible book—published in conjunction with one of the country's leading economics education organizations—makes the case that until government policy tackles disparities in wealth, not just income, the United States will never have racial or economic justice. Written by five leading experts on the racial wealth divide who recount the asset-building histories of Native Americans, Latinos, African Americans, Asian Americans, and European Americans, this book is a uniquely comprehensive multicultural history of American wealth. With its focus on public policies—how, for example, many post–World War II GI Bill programs helped whites only—The Color of Wealth is the first book to demonstrate the decisive influence of government on Americans' net worth.
Download or read book Income Inequality and Poverty written by Nanak Kakwani and published by New York : Published for the World Bank [by] Oxford University Press. This book was released on 1980 with total page 436 pages. Available in PDF, EPUB and Kindle. Book excerpt: Deals with income distribution methods and their economic applications.
Download or read book Causes and Consequences of Income Inequality written by Ms.Era Dabla-Norris and published by International Monetary Fund. This book was released on 2015-06-15 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper analyzes the extent of income inequality from a global perspective, its drivers, and what to do about it. The drivers of inequality vary widely amongst countries, with some common drivers being the skill premium associated with technical change and globalization, weakening protection for labor, and lack of financial inclusion in developing countries. We find that increasing the income share of the poor and the middle class actually increases growth while a rising income share of the top 20 percent results in lower growth—that is, when the rich get richer, benefits do not trickle down. This suggests that policies need to be country specific but should focus on raising the income share of the poor, and ensuring there is no hollowing out of the middle class. To tackle inequality, financial inclusion is imperative in emerging and developing countries while in advanced economies, policies should focus on raising human capital and skills and making tax systems more progressive.
