Does income inequality affect aggregate consumption? Revisiting the evidence

Crespo Cuaresma J, Kubala J, & Patrikova K (2016). Does income inequality affect aggregate consumption? Revisiting the evidence. Vienna University of Business and Economics , Vienna.

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Abstract

The standard Keynesian view predicts that equalization of the income distribution leads to an increase in aggregate consumption. We revisit the analysis carried out by the seminal empirical contributions which test such a hypothesis using modern econometric methods and the most comprehensive dataset existing on income distribution measures. Our results indicate that there is no substantive empirical evidence of an effect of income inequality on aggregate consumption.

Item Type: Other
Research Programs: World Population (POP)
Bibliographic Reference: WU Working Paper No. 210
Depositing User: Romeo Molina
Date Deposited: 28 Nov 2016 10:35
Last Modified: 23 Mar 2017 09:44
URI: http://pure.iiasa.ac.at/13996

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