Arbeitspapier
The "Rajan hypothesis": A counter-factual experiment
We integrate a centralized wage bargaining process into an otherwise standard DSGE model with a financial accelerator to simulate distributional shocks in the presence of financial instability. Our framework provides a counterfactual analysis of the effects of the observed decrease in the labor share when no concomitant rise in households' credit offsets the adverse effect on consumption. The result is a prolonged under-consumption recession that outweighs the initial boost in investment.
- Language
-
Englisch
- Bibliographic citation
-
Series: LEM Working Paper Series ; No. 2018/03
- Classification
-
Wirtschaft
Macro-Based Behavioral Economics: General‡
Computational Techniques; Simulation Modeling
Monetary Policy
- Subject
-
Income inequality
Distributional shocks
Under-consumption
- Event
-
Geistige Schöpfung
- (who)
-
Coronese, Matteo
Salle, Isabelle
- Event
-
Veröffentlichung
- (who)
-
Scuola Superiore Sant'Anna, Laboratory of Economics and Management (LEM)
- (where)
-
Pisa
- (when)
-
2018
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Coronese, Matteo
- Salle, Isabelle
- Scuola Superiore Sant'Anna, Laboratory of Economics and Management (LEM)
Time of origin
- 2018
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