Format du dépôt |
Notice |
Type de dépôt |
Article dans une revue |
Résumé |
en
How do inequality and growth evolve in the long run and why? We address this question by analyzing the interplay between household debt, growth and inequality within a monetary, stock-flow consistent framework. We first consider a Goodwin–Keen model where household consumption, rather than investment by firms, is the key behavioural driver for the dynamics of the economy. Whenever consumption exceeds current income, households can borrow from the banking sector. The resulting three dimensional dynamical system for wage share, employment rate, and household debt exhibits the characteristic asymptotic equilibria of the original Keen model, namely the analogue of Solow’s balanced-growth path, where all state variables converge to an interior point, in addition to deflationary equilibria with explosive debt and collapsing employment. We then extend this set-up by separating the household sector into workers and investors, obtaining a four-dimensional system with analogous types of asymptotic behaviour. Our main result is that long-run increasing inequality between these two classes of households occurs if and only if the system approaches one of the equilibria with unbounded debt ratios. More specifically, we find that one essential channel of increased inequality is the wealth transfer from workers to investors due to interest paid on debt from the former to the latter. Finally, when properly rewritten, the celebrated inequality r > g turns out to be a necessary condition for the asymptotic stability of long-run debt-deflation. Our findings shed new light on the relationships between fairness and efficiency, and have implications for public economic policy.
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Titre |
en
Household debt: The missing link between inequality and secular stagnation
fr
Dette des ménages : le lien manquant entre les inégalités et la stagnation séculaire.
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Auteur(s)
|
Gaël Giraud
1, 2, 3
, Matheus R Grasselli
4
1
CES -
Centre d'économie de la Sorbonne
( 15080 )
- Maison des Sciences Économiques - 106-112 Boulevard de l'Hôpital - 75647 Paris Cedex 13
- France
-
Université Paris 1 Panthéon-Sorbonne UMR8174 ( 7550 )
;
-
Centre National de la Recherche Scientifique UMR8174 ( 441569 )
2
AFD -
Agence française de développement
( 133737 )
- 5 Rue Roland Barthes - 75598 PARIS CEDEX 12
- France
3
PSE -
Paris School of Economics
( 301309 )
- 48 boulevard Jourdan 75014 Paris
- France
-
Université Paris 1 Panthéon-Sorbonne ( 7550 )
;
-
École normale supérieure - Paris ( 59704 )
;
-
Université Paris Sciences et Lettres ( 564132 )
;
-
École des hautes études en sciences sociales ( 99539 )
;
-
École des Ponts ParisTech ( 301545 )
;
-
Centre National de la Recherche Scientifique ( 441569 )
;
-
Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement ( 577435 )
4
Department of Mathematics and Statistics, McMaster University, Hamilton, Canada
( 408230 )
- Canada
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Date de publication électronique |
2019-03-15
|
Date de publication |
2021-03
|
Langue du document |
Anglais
|
Nom de la revue |
|
Volume |
183
|
Vulgarisation |
Non
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Page/Identifiant |
901-927
|
Comité de lecture |
Oui
|
Audience |
Internationale
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Mots-clés (JEL) |
-
C - Mathematical and Quantitative Methods/C.C6 - Mathematical Methods • Programming Models • Mathematical and Simulation Modeling/C.C6.C61 - Optimization Techniques • Programming Models • Dynamic Analysis
-
E - Macroeconomics and Monetary Economics
-
E - Macroeconomics and Monetary Economics/E.E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy/E.E2.E20 - General
-
E - Macroeconomics and Monetary Economics/E.E3 - Prices, Business Fluctuations, and Cycles/E.E3.E32 - Business Fluctuations • Cycles
-
D - Microeconomics/D.D6 - Welfare Economics/D.D6.D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
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Financement |
-
G. Giraud: Support from the Energy and Prosperity Chair is gratefully acknowledged.
M. Grasselli: Partially supported by a Discovery Grant from the Natural Science and Engineer Research Council of Canada (NSERC) and the Institute for New Economic Thinking (INET) Grant INO13-0 0 011 . Hospitality of the Mathematical Institute, University of Oxford, and INET at Oxford Martin School, where this work was completed, is also gratefully acknowledged.
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Domaine(s) |
-
Sciences de l'Homme et Société/Economies et finances
-
Sciences de l'Homme et Société
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Projet(s) ANR |
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Mots-clés |
en
Stock-flow consistency, Goodwin, Keen, Household debt, NAIRU, InequalityStagnation
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DOI |
10.1016/j.jebo.2019.03.002 |