Inequality over the business cycle: Estimating income risk using micro-data on consumption
Mostra el registre complet Registre parcial de l'ítem
- dc.contributor.author Primiceri, Giorgio E.ca
- dc.contributor.author Van Rens, Thijs, 1973-ca
- dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
- dc.date.accessioned 2017-07-26T10:50:01Z
- dc.date.available 2017-07-26T10:50:01Z
- dc.date.issued 2002-07-01
- dc.date.modified 2017-07-23T02:10:23Z
- dc.description.abstract We use CEX repeated cross-section data on consumption and income, to evaluate the nature of increased income inequality in the 1980s and 90s. We decompose unexpected changes in family income into transitory and permanent, and idiosyncratic and aggregate components, and estimate the contribution of each component to total inequality. The model we use is a linearized incomplete markets model, enriched to incorporate risk-sharing while maintaining tractability. Our estimates suggest that taking risk sharing into account is important for the model fit; that the increase in inequality in the 1980s was mainly permanent; and that inequality is driven almost entirely by idiosyncratic income risk. In addition we find no evidence for cyclical behavior of consumption risk, casting doubt on Constantinides and Duffie s (1995) explanation for the equity premium puzzle.
- dc.format.mimetype application/pdfca
- dc.identifier https://econ-papers.upf.edu/ca/paper.php?id=943
- dc.identifier.uri http://hdl.handle.net/10230/571
- dc.language.iso eng
- dc.relation.ispartofseries Economics and Business Working Papers Series; 943
- dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
- dc.rights.accessRights info:eu-repo/semantics/openAccess
- dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
- dc.subject.keyword consumption
- dc.subject.keyword inequality
- dc.subject.keyword risk
- dc.subject.keyword incomplete markets
- dc.subject.keyword business cycle
- dc.subject.keyword Macroeconomics and International Economics
- dc.title Inequality over the business cycle: Estimating income risk using micro-data on consumptionca
- dc.type info:eu-repo/semantics/workingPaper