|
EconStor >
Verein für Socialpolitik >
Jahrestagung des Vereins für Socialpolitik 2010 (Kiel): Ökonomie der Familie >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/37365
|
| | |
| Title: | | Consumption Growth and Inequality in a Heterogeneous Agent Model: Theory and Evidence from German Data  |
| Authors: | | Xie, Runli |
| Issue Date: | | 2010 |
| Series/Report no.: | | Beiträge zur Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie - Session: Distribution and Redistribution F14-V2 |
| Abstract: | | This paper studies the structure and dynamics of consumption and consumption growth inequality. The theoretical framework is a heterogeneous agent model with stochastic labor endowments, where the group mean consumption serves as consumption externality. The main finding is that households' preferences affect the within-group inequality through asset holding decisions: it decreases with groups' degree of patience, and increases with households' eagerness to keep up with the group average. The relationship between the group average consumption growth and within-group inequality predicted by the model is shown as slightly positive yet significant in a synthesis study combining the German Socio-Economic Panel (GSOEP) and the Einkommens- und Verbrauchsstichprobe (EVS). Age and household size are crucial for within-group inequality, as young and/or small households are more sensitive to income and consumption shocks. Large and well-educated households with unskilled jobs have undergone surprisingly inferior performance in consumption growth and growth variance. Moreover, the data also shows increases of within-group inequality directly after the reunification and the introduction of the euro. |
| Subjects: | | consumption inequality consumption growth German Socio-Economic Panel EVS |
| JEL: | | E21 D91 D31 |
| Document Type: | | Conference Paper |
| Appears in Collections: | | Jahrestagung des Vereins für Socialpolitik 2010 (Kiel): Ökonomie der Familie
|
| Files in This Item:
| |
|
| No. of Downloads:
| |
| last Month |
last 3 Month |
total |
|
|
|
|
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/37365
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|