Artikel
Income distribution, the Great Depression, and the relative income hypothesis
This paper discusses the rise of top-end inequality and its effects on household consumption, saving, and debt in the United States during the 1920s by applying a non-standard theory of consumption, the relative income hypothesis, to the period of interest. Analysing the relevant data descriptively, the paper argues that income inequality is linked to the increase of household consumption and the simultaneous decline of household savings as well as rapidly increasing household debt. Thus, the rise of top-end inequality in connection with a broader institutional change, such as the deregulation of financial markets, has contributed to a build-up of financial and macroeconomic instability in the period leading to the Great Depression.
- Language
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Englisch
- Bibliographic citation
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Journal: European Journal of Economics and Economic Policies: Intervention (EJEEP) ; ISSN: 2052-7772 ; Volume: 15 ; Year: 2018 ; Issue: 1 ; Pages: 47-70
- Classification
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Wirtschaft
Personal Income, Wealth, and Their Distributions
Factor Income Distribution
Macroeconomics: Consumption; Saving; Wealth
Aggregate Factor Income Distribution
Economic History: Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations: U.S.; Canada: 1913-
Economic History: Financial Markets and Institutions: U.S.; Canada: 1913-
Economic History: Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy: U.S.; Canada: 1913-
Economic History: Manufacturing and Construction: U.S.; Canada: 1913-
- Subject
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income distribution
relative income hypothesis
household debt
financial innovation
Great Depression
- Event
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Geistige Schöpfung
- (who)
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Belabed, Christian A.
- Event
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Veröffentlichung
- (who)
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Edward Elgar Publishing
- (where)
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Cheltenham
- (when)
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2018
- DOI
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doi:10.4337/ejeep.2017.0023
- Handle
- Last update
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10.03.2025, 11:41 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
- Artikel
Associated
- Belabed, Christian A.
- Edward Elgar Publishing
Time of origin
- 2018
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