Working papers, Department of Economics, WU (Wirtschaftsuniversität Wien)
Jesus Crespo Cuaresma
Does income inequality affect aggregate consumption? Revisiting the evidence
(), Jozef Kubala
() and Kristina Petrikova
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.
Keywords: Inequality, aggregate consumption, average propensity to consume; (follow links to similar papers)
JEL-Codes: E22,; D31; (follow links to similar papers)
Before downloading any of the electronic versions below
you should read our statement on
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Design Joakim Ekebom