Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/25500
Authors: 
Bertola, Giuseppe
Koeniger, Winfried
Year of Publication: 
2006
Series/Report no.: 
CFS Working Paper 2006/34
Abstract: 
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.
Subjects: 
Consumption
Smoothing
JEL: 
E21
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size
492.52 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.