The distributive effect of monetary policy : the top one percent makes the difference
Davtyan, Karen (Universitat de Barcelona)

Date:	2017
Description:	13 pàg.
Abstract:	The paper evaluates the distributional effect of monetary policy. The empirical analysis is implemented for the USA, where the dynamics in income inequality is mainly driven by the variation in the top one percent of the income distribution. The paper uses the inequality measures that represent the whole income distribution. The distributive effect of monetary policy is evaluated in the cases of different frequency data. To identify a monetary policy shock, the paper applies the contemporaneous and the long run identification methods. In particular, a cointegration relation is determined among the considered variables and the vector error correction methodology is used for the identification. The obtained results indicate that contractionary monetary policy decreases income inequality. These results can have important implications for the design of policies to reduce income inequality by giving more weight to monetary policy.
Rights:	Aquest document està subjecte a una llicència d'ús Creative Commons. Es permet la reproducció total o parcial, la distribució, i la comunicació pública de l'obra, sempre que no sigui amb finalitats comercials, i sempre que es reconegui l'autoria de l'obra original. No es permet la creació d'obres derivades.
Language:	Anglès
Document:	Article ; recerca ; Versió acceptada per publicar
Subject:	Cointegration ; Identification ; Income inequality ; Monetary policy ; SDG 1: No Poverty ; SDG 10: Reduced Inequalities ; ODS 1: Fi de la pobreza ; ODS 1: Fin de la pobreza ; ODS 10: Reducción de las desigualdades ; ODS 10: Reducció de les desigualtats
Published in:	Economic modelling, Vol. 65 (2017) , p. 106-118, ISSN 1873-6122

DOI: 10.1016/j.econmod.2017.05.011

33 p, 601.6 KB

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