The Distributional Impact of Sectoral Supply and Demand Shifts: A Unified Framework

Nittai K. Bergman, Nir Jaimovich and Itay Saporta-Eksten
Authors registered in the RePEc Author Service: Itay Saporta Eksten

No 32271, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Economies routinely experience a variety of sector-specific supply and demand shifts. Yet, the distributional welfare consequences of these shifts are not well understood. We address this gap by developing an analytical framework that jointly integrates supply-side and demand-side heterogeneity without imposing specific functional forms on consumption and production. This enables us to identify the key forces that shape the distributional welfare impact of sector-specific supply and demand shifts—in terms of consumer preferences and sectoral production functions. We estimate key parameters and quantify the heterogeneous welfare effects of sectoral shifts, revealing significant variation in their impact.

JEL-codes: E0 (search for similar items in EconPapers)
Date: 2024-03
New Economics Papers: this item is included in nep-inv
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