Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/100296
Authors: 
van Treeck, Till
Behringer, Jan
Year of Publication: 
2014
Series/Report no.: 
Beiträge zur Jahrestagung des Vereins für Socialpolitik 2014: Evidenzbasierte Wirtschaftspolitik - Session: Income Distribution, Status Comparisons and the Current Account D08-V1
Abstract: 
We analyse the link between income distribution and the current account for the period 1972-2007. We find that rising (top-end) personal inequality leads to a decrease of the current account, ceteris paribus. This result is consistent with consumption externalities resulting from upward-looking comparisons. Moreover, an increase in the corporate financial balance or a decrease in the labour income share leads to an increase in the current account. This finding is consistent with the view that consumers do not fully pierce the corporate veil . Changes in personal and functional income distribution have contributed considerably to the widening of current account balances.
JEL: 
D31
D33
F41
Document Type: 
Conference Paper

Files in This Item:
File
Size





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