Arbeitspapier

Consumption smoothing and liquidity income redistribution

We show theoretically that income redistribution benefits borrowingconstrained individuals more than is implied by standard relative-income and uninsurable-risk considerations. Empirically, we find in international opinion-survey data that younger and lower-income individuals express stronger support for government redistribution in countries where consumer credit is less easily available. This evidence supports our theoretical perspective if such individuals are more strongly affected by tighter credit supply, in that expectations of higher incomes in the future increase their propensity to borrow.

Language
Englisch

Bibliographic citation
Series: CFS Working Paper ; No. 2006/34

Classification
Wirtschaft
Macroeconomics: Consumption; Saving; Wealth
Subject
Consumption
Smoothing

Event
Geistige Schöpfung
(who)
Bertola, Giuseppe
Koeniger, Winfried
Event
Veröffentlichung
(who)
Goethe University Frankfurt, Center for Financial Studies (CFS)
(where)
Frankfurt a. M.
(when)
2006

Handle
URN
urn:nbn:de:hebis:30-38088
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Bertola, Giuseppe
  • Koeniger, Winfried
  • Goethe University Frankfurt, Center for Financial Studies (CFS)

Time of origin

  • 2006

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