Modelling the Dynamic Effects of Inequality

Ed Cornforth () and Tibor Szendrei ()

No 576, National Institute of Economic and Social Research (NIESR) Discussion Papers from National Institute of Economic and Social Research

Abstract: In this paper, we set out a methodology to add income quintiles into the National Institute's Global Econometric Model (NiGEM) to capture the dynamic impacts of inequality. We then explore these dynamics by simulating fiscal policies of redistribution. We explore what the effect of lowering inequality may be, and document the trade‐offs that exist.

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Persistent link: https://EconPapers.repec.org/RePEc:nsr:niesrd:576

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