Arbeitspapier
The role of credit on the evolution of wealth inequality in the USA
In the USA, the share of household wealth held by the richest 1% increased from 23.5% in 1980 to 41.8% in 2012. This paper contributes to understanding the causes behind this increase. First, using an accounting decomposition, I show that more than half of the increase in the share of the top 1% can be attributed to a decrease in the saving rate of the bottom 99%. Second, using a heterogeneous agent model, I show that the decrease in the saving rate of the bottom groups cannot be rationalized by the reduction in the progressively of taxation or changes in the volatility and concentration of labor earnings. Lastly, I introduce a shock to the credit market into the model in the form of loosening the borrowing constraints of the economy. This shock can simultaneously match the increase in wealth concentration and the decrease of the saving rate of the economy.
- Sprache
-
Englisch
- Erschienen in
-
Series: Working Papers ; No. 2020-13
- Klassifikation
-
Wirtschaft
Household Saving; Personal Finance
Personal Income, Wealth, and Their Distributions
Factor Income Distribution
Macroeconomics: Consumption; Saving; Wealth
Fiscal Policy
- Thema
-
Credit
Debt
Saving Rate
Wealth Distribution
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Oviedo Moguel, Rodolfo
- Ereignis
-
Veröffentlichung
- (wer)
-
Banco de México
- (wo)
-
Ciudad de México
- (wann)
-
2020
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Oviedo Moguel, Rodolfo
- Banco de México
Entstanden
- 2020
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