Link to the University of Pittsburgh
Link to the University Library SystemContact us link
AEI Banner

Inequality, the risk of secular stagnation and the increase in household debt. NBB Working Paper No 375, August 2019

Rannenberg., Ansgar (2019) Inequality, the risk of secular stagnation and the increase in household debt. NBB Working Paper No 375, August 2019. [Working Paper]

[img] PDF - Published Version
Download (1816Kb)

    Abstract

    I investigate the effect of rising income inequality on the natural rate of interest in an economy with “rich” households with preferences over wealth and “non-rich” households, a housing market and credit market frictions. Simulating the increase in interpersonal and functional income inequality over the 1981-2016 period replicates the downward trend in the natural rate of interest estimated by Laubach and Williams (2016), most of the increase in the debt-to-income ratio of the bottom 90 % of households and the upward trend in house prices observed during this period.

    Export/Citation:EndNote | BibTeX | Dublin Core | ASCII (Chicago style) | HTML Citation | OpenURL
    Social Networking:
    Share |
    Item Type: Working Paper
    Uncontrolled Keywords: Income inequality, natural rate of interest, secular stagnation.
    Subjects for non-EU documents: Countries > Belgium
    EU policies and themes > Policies & related activities > economic and financial affairs > general
    Subjects for EU documents: UNSPECIFIED
    EU Series and Periodicals: UNSPECIFIED
    EU Annual Reports: UNSPECIFIED
    Series: Series > National Bank of Belgium (Brussels) > Working Papers
    Depositing User: Phil Wilkin
    Official EU Document: No
    Language: English
    Date Deposited: 28 Jan 2020 19:08
    Number of Pages: 57
    Last Modified: 28 Jan 2020 19:08
    URI: http://aei.pitt.edu/id/eprint/102304

    Actions (login required)

    		 View Item

    Document Downloads