Austerity, Inequality, and Private Debt Overhang

Konferenzbeitrag

We show that the distributional consequences of fiscal consolidations depend significantly on the level of private indebtedness. Austerity leads to a strong and persistent increase in income inequality when private debt is high. In contrast, there are no discernible distributional effects when private debt is low. This result is robust to alternative identifications of consolidations, to different ways of defining high and low debt states, and to controlling for the state of the business cycle.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2017: Alternative Geld- und Finanzarchitekturen - Session: Applied Macroeconometrics ; No. A06-V1

Classification and Topics

• Classification: Wirtschaft ; Fiscal Policy ; Incomes Policy; Price Policy ; Equity, Justice, Inequality, and Other Normative Criteria and Measurement

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Klein, Mathias ; Winkler, Roland
• Event: Veröffentlichung
• (who): ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
• (where): Kiel, Hamburg
• (when): 2017

Further information

• Handle: http://hdl.handle.net/10419/168076
• Last update: 10.03.2025, 11:43 AM CET