Consumption smoothing and liquidity income redistribution
- We show theoretically that income redistribution benefits borrowingconstrained individuals more than is implied by standard relative-income and uninsurable-risk considerations. Empirically, we find in international opinion-survey data that younger and lower-income individuals express stronger support for government redistribution in countries where consumer credit is less easily available. This evidence supports our theoretical perspective if such individuals are more strongly affected by tighter credit supply, in that expectations of higher incomes in the future increase their propensity to borrow. JEL Classification: E21
Author: | Giuseppe Bertola, Winfried KoenigerORCiDGND |
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URN: | urn:nbn:de:hebis:30-38088 |
Parent Title (German): | Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 2006,34 |
Series (Serial Number): | CFS working paper series (2006, 34) |
Document Type: | Working Paper |
Language: | English |
Year of Completion: | 2006 |
Year of first Publication: | 2006 |
Publishing Institution: | Universitätsbibliothek Johann Christian Senckenberg |
Release Date: | 2007/02/23 |
Tag: | Consumption; Smoothing |
GND Keyword: | Einkommen; Konsumentenkredit |
Issue: | November 2006 |
Page Number: | 34 |
HeBIS-PPN: | 190330236 |
Institutes: | Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS) |
Dewey Decimal Classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
Licence (German): | Deutsches Urheberrecht |