Crespo Cuaresma, Jesus ORCID: https://orcid.org/0000-0003-3244-6560 and Kubala, Jozef and Petrikova, Kristina
(2018)
Does income inequality affect aggregate consumption? Revisiting the evidence.
Empirical Economics, 55 (2).
pp. 905-912.
ISSN 1435-8921
![]()
|
PDF
10.1007_s00181-017-1302-x.pdf Available under License Creative Commons: Attribution 4.0 International (CC BY 4.0). Download (554kB) |
Abstract
The standard Keynesian view predicts that equalization of the income distribution leads to an increase in aggregate consumption. We revisit the analysis carried out by the seminal empirical contributions which test such a hypothesis using modern econometric methods and the most comprehensive dataset existing on income distribution measures. Our results indicate that there is no empirical evidence of a negative effect of income inequality on aggregate consumption.
Item Type: | Article |
---|---|
Additional Information: | Open access funding provided by Vienna University of Economics and Business (WU). |
Keywords: | Inequality, Aggregate consumption, Average propensity to consume |
Classification Codes: | JEL E22, D31 |
Divisions: | Departments > Volkswirtschaft > Makroökonomie Forschungsinstitute > Human Capital and Development Kompetenzzentren > Sustainability Transf. & Responsibility |
Version of the Document: | Published |
Depositing User: | Gertraud Novotny |
Date Deposited: | 06 Jul 2017 13:33 |
Last Modified: | 18 Aug 2020 07:08 |
Related URLs: | |
FIDES Link: | https://bach.wu.ac.at/d/research/results/81222/ |
URI: | https://epub.wu.ac.at/id/eprint/5625 |
Actions
![]() |
View Item |
Downloads
Downloads per month over past year