1 option
Inequality and Business Cycles / Florin O. Bilbiie, Giorgio Primiceri, Andrea Tambalotti.
- Format:
- Book
- Author/Creator:
- Bilbiie, Florin O.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w31729.
- NBER working paper series no. w31729
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2023.
- Summary:
- We quantify the connection between inequality and business cycles in a medium-scale New Keynesian model with tractable household heterogeneity, estimated with aggregate and cross-sectional data. We find that inequality substantially amplifies cyclical fluctuations. The primary source of this amplification is cyclical precautionary saving behavior. Savers reduce their consumption to insure themselves against the idiosyncratic risk of large income drops, which rises in recessions.
- Notes:
- Print version record
- September 2023.
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.