TY  - UNPD
A1  - Krueger, Dirk
A1  - Perri, Fabrizio
T1  - Does income inequality lead to consumption inequality? evidence and theory
T2  - Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 2005,15
N2  - Using data from the Consumer Expenditure Survey we first document that the recent increase in income inequality in the US has not been accompanied by a corresponding rise in consumption inequality. Much of this divergence is due to different trends in within-group inequality, which has increased significantly for income but little for consumption. We then develop a simple framework that allows us to analytically characterize how within-group income inequality affects consumption inequality in a world in which agents can trade a full set of contingent consumption claims, subject to endogenous constraints emanating from the limited enforcement of intertemporal contracts (as in Kehoe and Levine, 1993). Finally, we quantitatively evaluate, in the context of a calibrated general equilibrium production economy, whether this set-up, or alternatively a standard incomplete markets model (as in Ayiagari 1994), can account for the documented stylized consumption inequality facts from the US data. JEL Klassifikation: E21, D91, D63, D31, G22
T3  - CFS working paper series - 2005, 15 
KW  - Limited Enforcement
KW  - Risk Sharing
KW  - Consumption Inequality
KW  - Einkommensunterschied
KW  - Verbrauch
Y1  - 2005
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/4400
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30-10912
IS  - May 2005
ER  -