Income distribution and current account imbalances
| Autor: | Christian A. Belabed, Till van Treeck, Thomas Theobald |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2018 |
| Předmět: |
Net national income
Economics and Econometrics Labour economics Total personal income 05 social sciences Gross income jel:D33 jel:E21 jel:F32 jel:D31 jel:F41 Adjusted gross income jel:E25 0506 political science Income distribution Permanent income hypothesis 0502 economics and business 050602 political science & public administration Economics Soziologie Sozialwissenschaften Household income 050207 economics Income elasticity of demand income distribution relatve income hypothesis household debt stock flow consistency current account institutions |
| Popis: | We develop a three-country, stock-flow consistent macroeconomic model to study the effects of changes in both personal and functional income distribution on national current account balances. Each country has a household sector and a non-household (corporate) sector. The household sector is divided into income deciles, and consumer demand is characterized by upward-looking status comparisons following the relative income hypothesis of consumption. The strength of consumption emulation depends on country-specific institutions. The model is calibrated for the United States, Germany and China. Simulations suggest that a substantial part of the increase in household debt and the decrease in the current account in the United States since the early 1980s can be explained by the interplay of rising (top-end) household income inequality and institutions. On the other hand, the weak domestic demand and increasing current account balances of Germany and China since the mid-1990s are strongly related to shifts in the functional income distribution at the expense of the household sector. |
| Databáze: | OpenAIRE |
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