Top Incomes, Rising Inequality and Welfare

Kevin Lansing and Agnieszka Markiewicz ()

Economic Journal, 2018, vol. 128, issue 608, 262-297

Abstract: We introduce permanently shifting income shares into a growth model with workers and capital owners. The model exactly replicates the US time paths of the top quintile income share, capital's share of income and key macroeconomic variables from 1970 to 2014. Welfare effects depend on changes in the time pattern of agents’ consumption relative to a counterfactual scenario that holds income shares and the transfer†output ratio constant. Short†run declines in workers’ consumption are only partially offset by longer†term gains from higher transfers and more capital per worker. The baseline simulation delivers large welfare gains for capital owners and significant welfare losses for workers.

Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (14)

Downloads: (external link)
https://doi.org/10.1111/ecoj.12411

Related works:
Working Paper: Top Incomes, Rising Inequality, and Welfare (2015)
Working Paper: Top Incomes, Rising Inequality, and Welfare (2015)
Working Paper: Top incomes, rising inequality, and welfare (2012)
Working Paper: Top Incomes, Rising Inequality, and Welfare (2012)
Working Paper: Top Incomes, Rising Inequality, and Welfare (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:econjl:v:128:y:2018:i:608:p:262-297

Ordering information: This journal article can be ordered from
http://onlinelibrary ... 1111/(ISSN)1468-0297

Access Statistics for this article

Economic Journal is currently edited by Estelle Cantillon, Martin Cripps, Andrea Galeotti, Morten Ravn, Kjell G. Salvanes, Frederic Vermeulen, Hans-Joachim Voth and Rachel Kranton

More articles in Economic Journal from Royal Economic Society Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().