İşletme Fakültesi Seminer Serisi / Berrak Bahadır

Tarih: 25 Aralık 2019 - Çarşamba
Saat: 10:00-11:30
Yer: AB2, Toplantı Odası: 345

Title: Household Debt, Consumption and Inequality

Abstract: This paper examines the potential link between household credit shocks and income inequality at the national level. For a sample of 32 developed and developing countries, we show that aggregate consumption temporarily increases in the short run and decreases in the long run in the face of credit shocks, and that this dynamic response is larger in absolute value, in the short and long run, for countries with high income inequality compared to those with low income equality. We develop a simple dynamic
theoretical model, based on binding credit constraints, to illustrate the model's mechanisms.