Inequality and Finance in Macrodynamics (eBook)

Bettina Bökemeier, Alfred Greiner (Herausgeber)

eBook Download: PDF

2017 | 1st ed. 2017
XII, 270 Seiten
Springer International Publishing (Verlag)
978-3-319-54690-2 (ISBN)

Infos

This contributed volume combines approaches of the current inequality debate with aspects of finance based on profound macroeconomic model analyses. Research on inequality has had a long tradition in economics. With the financial crisis from 2007, not only output decreased tremendously, but also inequality has risen since then. The book presents selected contributions of a workshop held at Bielefeld University in 2016 and features additional papers written by experts in the field. A mixture of established researchers and young scholars presents both theoretical and empirical frameworks to analyze the subject. 

Inhalt

Preface 6
Contents 9
Contributors 11
Inequality in Germany and the US: An Introductory Note 13
1 Introduction 13
2 Some Data 14
2.1 Income Inequality 15
2.2 Wealth Inequality 16
3 Conclusion 17
References 18
Assessing Public Spending Efficiency in 20 OECD Countries 19
1 Introduction 19
2 Literature 21
3 Methodology and Data 22
3.1 Public Sector Performance (PSE) 22
3.2 Public Sector Efficiency 25
3.3 Data Envelopment Analysis (DEA) 25
4 Empirical Analysis 27
4.1 Public Sector Performance 27
4.2 Public Sector Efficiency (PSE) 29
4.3 Data Envelopment Analysis (DEA) 29
5 Conclusion 37
Appendix 38
References 54
Government Debt, Fiscal Rules and Singular Growth Dynamics 55
1 Introduction 55
2 The Model 58
2.1 Endogenous Debt Adjustment 60
2.2 The DGE in Detrended Variables 62
3 Local Analysis 65
3.1 Impasse-Surface 65
3.2 Balanced Growth Paths and Local Dynamics 72
4 Equilibrium Dynamics 75
4.1 Multiple Over-Determined BGP's 76
4.2 Determinate BGP's 77
5 Conclusion 80
Appendix: Proofs 81
References 86
Financial Liberalization, Inequality and Inclusion in Low-Income Countries 87
1 Introduction 87
2 Literature Review 88
3 Data Description 89
3.1 Measuring Income Inequality 89
3.2 Measuring Capital Account Openness 92
3.3 Identification Strategy 93
4 Methodology 93
4.1 The Baseline 93
4.2 Mechanisms: Financial Development and Inclusion 95
5 Results 97
5.1 The Baseline 97
5.1.1 Baseline Results 97
5.1.2 Robustness Check with Local Projection Method 98
5.1.3 Difference Between Equity, Bond and FDI Liberalization 100
5.2 Mechanisms: Financial Development and Inclusion 101
6 Conclusion 103
Appendix: Data Appendix 104
Current Account Openness Index 104
Regulation Reform 104
Macroeconomic Variables 105
Redistributive Policies 105
Credit Market Freedom Indicator 105
Financial Inclusion 106
References 106
On (Non-)Neutrality of Public Debt in Growing Economies 108
1 Introduction 108
2 The Growth Model with Flexible Wages and Elastic Labour Supply 110
2.1 Model Structure 110
2.1.1 The Household 110
2.1.2 The Productive Sector 112
2.1.3 The Government 112
2.1.4 Equilibrium Conditions and the Balanced Growth Path 113
2.2 Analysis of the Model 114
3 The Model with Wage Rigidity 117
3.1 The Model Setup 118
3.1.1 The Household Sector 118
3.1.2 The Productive Sector and the Labor Market 118
3.1.3 The Government 119
3.1.4 Equilibrium Conditions and Balanced Growth 120
4 Analysis of the Model 121
5 Conclusion 123
Appendix 124
Proof of Proposition 1 124
Proof of Proposition 2 124
Proof of Lemma 7 125
Proof of Proposition 3 125
Proof of Proposition 4 127
Proof of Proposition 5 128
Proof of Proposition 6 128
References 130
Financial Intermediation and Directed Technical Change 131
1 Introduction 131
2 The Model 133
2.1 The Economy 133
2.2 Production Sectors 134
2.2.1 Final Output 134
2.2.2 Intermediate Production 134
2.2.3 Capital Goods Production and Innovations 135
2.3 Heterogeneous Consumers 136
2.3.1 Workers 136
2.3.2 Innovators 137
2.3.3 Entrepreneurs 137
2.4 Banking Sector 138
2.5 Aggregation 138
3 The Decentralized Equilibrium 140
3.1 Producer Behavior 141
3.1.1 Final Output 141
3.1.2 Intermediate Output 141
3.1.3 Capital Goods Production 142
3.2 Consumer Behavior 145
3.3 Banking Behavior 146
3.4 Market Clearing 146
3.4.1 Capital Markets 146
3.4.2 Factor Markets 147
3.4.3 Goods Markets 147
3.5 Equilibrium 148
4 Determinants of Directed Technical Change 151
4.1 The Demand for Innovations 151
4.2 The Supply of Innovations 156
5 Properties of the Balanced Growth Path Equilibrium 158
6 Conclusions 162
Appendix: Mathematical Appendix 163
Proof of Lemma 1 163
Derivation of ?? (Eq.(76)) 164
Proof of Lemma 2 164
Proof of Lemma 3 166
References 166
Sustainability of Public Debt in an AK Model with Complex Tax System 168
1 Introduction 168
2 Model 170
2.1 Household 170
2.2 Firms 171
2.3 Government 172
2.4 Market Clearing Conditions 173
3 Equilibrium 173
3.1 Equilibrium Path 173
3.2 Balanced Growth Path 175
4 Sustainability of Public Debt 177
4.1 Critical Level of Public Debt-to-GDP Ratio 178
4.2 Marginal Rates of Substitution of the Tax Rates 179
4.3 Required Tax Rates for the Sustainability of the Public Debt 181
4.4 Numerical Example 182
5 Conclusion 184
References 184
Demographic Change and the Rates of Return to Risky Capital and Safe Debt 186
1 Introduction 186
2 The Model 187
2.1 Government Debt 188
2.2 Households 189
2.2.1 Equilibrium 190
2.3 Baby Boom and Equity Premium 191
3 Extensions 192
3.1 The Effect of Human Capital 192
3.2 Portfolio Choice 194
4 Discussion 197
5 Conclusion 198
References 198
Financing Sustainable Growth Through Energy Exports and Implications for Human Capital Investment 200
1 Introduction 200
2 Historical and Statistical Facts 205
3 Basic Model of a Closed Economy and Its Solution 208
4 Open Economy Model with Resources and Its Solutions 211
4.1 Theoretical Model 211
4.2 Numerical Solution of the Open Economy Model 213
5 Open Economy Model with Human Capital and Its Solutions 217
5.1 Theoretical Model 217
5.2 Numerical Solutions 217
6 Conclusion 219
Appendix 1 220
Appendix 2 221
Appendix 3 222
Appendix 4 223
References 225
Macroeconomic Risk, Fiscal Policy Rules and Aggregate Volatility in Asymmetric Currency Unions: A Behavioral Perspective 229
1 Introduction 229
2 The Model 231
2.1 Households 232
2.2 Firms 233
2.3 Monetary Authorities 233
2.4 Fiscal Authorities 234
2.5 Sovereign Risk 235
2.6 Market Clearing and External Imbalances 237
3 Model Analysis 238
3.1 Transmission Mechanisms and Dynamic Adjustments 239
3.2 Debt Stabilization Policy and Its Effect on the Macroeconomic Stability 241
3.3 Adjustment Volatility Under Alternative Sovereign Risk Perceptions and Fiscal Policy Rules 242
3.3.1 Scenario 1: Consensus Between Government and Markets About Sovereign Debt as the Main Determinant of Sovereign Risk 243
3.3.2 Scenario 2: Disagreement About the Main Determinant of Sovereign Risk (Government: Sovereign Debt, Markets: Output Gap) 244
3.3.3 Scenario 3: Consensus Between Government and Markets About the Output Gap as the Main Determinant of Sovereign Risk 245
3.3.4 Scenario 4: Disagreement About the Main Determinant of Sovereign Risk (Government: Sovereign Debt, Markets: Country Bond Spread) 246
4 Concluding Remarks 247
References 249
Asset Accumulation with Heterogeneous Households: The Rise of Wealth Disparity 251
1 Introduction 251
2 A Model with Heterogeneous Households 254
2.1 High Net Worth Households 255
2.2 Low Net Worth Households 258
2.3 Wealth Distribution 261
3 Empirical Trends 261
3.1 Data Sources, Methodology and Measures 261
3.2 Distribution of Net Wealth 265
3.3 Income Brackets and Income Sources 268
3.4 Life Cycle Aspects of Income and Wealth 271
3.5 Capital Income Trends 274
4 Private Wealth and Public Policies 275
5 Conclusions 276
References 277

Produkt-Details

• Erscheint lt. Verlag: 26.4.2017
• Reihe/Serie: Dynamic Modeling and Econometrics in Economics and Finance
• Reihe/Serie: Dynamic Modeling and Econometrics in Economics and Finance
• Zusatzinfo: XII, 270 p. 90 illus., 48 illus. in color.
• Verlagsort: Cham
• Sprache: englisch
• Themenwelt: Mathematik / Informatik ► Mathematik
• Themenwelt: Sozialwissenschaften ► Politik / Verwaltung
• Themenwelt: Sozialwissenschaften ► Soziologie
• Themenwelt: Technik
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Finanzierung
• Themenwelt: Wirtschaft ► Volkswirtschaftslehre
• Schlagworte: debt • Economic Dynamics • Economic Policy • Finance • Financial Crises • Financial Crisis • income inequality • Inequality • Macroeconomics • Public Finance
• ISBN-10: 3-319-54690-2 / 3319546902
• ISBN-13: 978-3-319-54690-2 / 9783319546902