A note on the cyclical behaviour of the income distribution
Empirically, the income share is procyclical for the low-income groups and acyclical for the top 5%. To generate this kind of behaviour in a DGE business cycle model, we consider overlapping generations and elastic labour supply in addition to those elements considered by Castañeda et al. (1998). We...
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| Format: | eBook |
| Language: | English |
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Paris
OECD Publishing
2013
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| Collection: | OECD Books and Papers - Collection details see MPG.ReNa |
| Summary: | Empirically, the income share is procyclical for the low-income groups and acyclical for the top 5%. To generate this kind of behaviour in a DGE business cycle model, we consider overlapping generations and elastic labour supply in addition to those elements considered by Castañeda et al. (1998). We also analyse a model with rigid wages. However, these features do not help to constitute a major improvement vis-a-vis their model. JEL classification: C68, D31, E32 Keywords: Income distribution, business cycle, overlapping generations, unemployment, pensions |
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| Physical Description: | 7 p. 21 x 28cm |