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http://hdl.handle.net/10419/25500
  
Title:Consumption smoothing and liquidity income redistribution PDF Logo
Authors:Bertola, Giuseppe
Koeniger, Winfried
Issue Date: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:urn:nbn:de:hebis:30-38088
Document Type:Working Paper
Appears in Collections:CFS Working Paper Series, Universität Frankfurt a. M.

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