Inequality and debt in a model with heterogeneous agents

Federico Ravenna and Nicolas Vincent

Economics Letters, 2014, vol. 123, issue 2, 177-182

Abstract: We show that to account for the cross-sectional divergence in debt-to-income ratios in US data a DSGE model must assume a tax reallocation across the top- and bottom-income quantile of the population, rather than differential productivity growth, and low cost of access to financial intermediation.

Keywords: Inequality; Debt; DSGE model (search for similar items in EconPapers)
JEL-codes: E2 E3 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (3)

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Working Paper: Inequality and Debt in a Model with Heterogeneous Agents (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:123:y:2014:i:2:p:177-182

DOI: 10.1016/j.econlet.2014.01.035

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