Inequality over the business cycle: the role of distributive shocks
نویسندگان
چکیده
Abstract This paper examines how wealth and income inequality dynamics are related to fluctuations in the functional distribution over business cycle. In a panel estimation for OECD countries between 1970 2016, although is, on average countercyclical significantly associated with capital share, one-third of display pro- or noncyclical relationship. To analyze observed pattern, we incorporate distributive shocks into an RBC model, where agents ex ante heterogeneous respect ability. We find that whether behave countercyclically not depends elasticity intertemporal substitution persistence shocks. match model quarterly US data using Bayesian techniques. The parameter estimates point toward non-monotonic relationship productivity fluctuations. On impact, increases response TFP but subsequently declines. Furthermore, explain 17%
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ژورنال
عنوان ژورنال: Macroeconomic Dynamics
سال: 2021
ISSN: ['1365-1005', '1469-8056']
DOI: https://doi.org/10.1017/s1365100521000523