Inflation and income inequality: a shopping-time aproach: (Forthcoming, Journal of Development Economics)
Our work is based on a simpliÖed heterogenous-agent shoppingtime economy in which economic agents present distinct productivities in the production of the consumption good, and di§erentiated access to transacting assets. The purpose of the model is to investigate whether, by focusing the analysis so...
| Authors: | , , |
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| Format: | article |
| Status: | Published version |
| Publication Date: | 2004 |
| Country: | Brasil |
| Institution: | Fundação Getulio Vargas (FGV) |
| Repository: | Repositório Institucional do FGV (FGV Repositório Digital) |
| Language: | English |
| OAI Identifier: | oai:repositorio.fgv.br:10438/368 |
| Online Access: | http://hdl.handle.net/10438/368 |
| Access Level: | Open access |
| Keyword: | Inflation Gini coefficient Income inequality Shopping time Income distribution Economia Inflação Renda - Distribuição Gini, Coeficiente de |
| Summary: | Our work is based on a simpliÖed heterogenous-agent shoppingtime economy in which economic agents present distinct productivities in the production of the consumption good, and di§erentiated access to transacting assets. The purpose of the model is to investigate whether, by focusing the analysis solely on endogenously determined shopping times, one can generate a positive correlation between ináation and income inequality. Our main result is to show that, provided the productivity of the interest-bearing asset in the transacting technology is high enough, it is true true that a positive link between ináation and income inequality is generated. Our next step is to show, through analysis of the steady-state equations, that our approach can be interpreted as a mirror image of the usual ináation-tax argument for income concentration. An example is o§ered to illustrate the mechanism. |
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