Inequality in Macroeconomic Models

Cecilia Garcia-Penalosa

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Abstract: This articles focuses on the recent research efforts to incorporate income, wage and wealth inequality in macroeconomic models. I start by reviewing recent models on the impact of inequality on, on the one hand, long-run growth and, on the other, and macroeconomic fluctuations. The articles then reviews the literature concerned with the macroeconomic determinants of wage and wealth inequality. It concludes by discussing a number of possible avenues of research that seem to me particularly important, such as the impact of macroeconomic policy on distribution or the effect that firm size can have on both growth and wage inequality.

Date: 2018
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Citations: View citations in EconPapers (1)

Published in Revue de l'OFCE, 2018, 157 (3), pp.93-115. ⟨10.3917/reof.157.0093⟩

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Journal Article: Inequality in Macroeconomic Models (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02164055

DOI: 10.3917/reof.157.0093

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