In this paper, we study the relationship between changes in the world interest rate and within-country inequality during the 1985–2005 period in which the world interest rate sharply declined. In line with the predictions of the seminal model of Galor and Zeira [Income distribution and macroeconomics. Review of Economic Studies 60, 35–52], the analysis suggests that the decrease in the world interest rate is associated with a decrease in inequality in poor countries and an increase in inequality in rich ones.

Battisti Michele, F.T. (2019). WORLD INTEREST RATES AND INEQUALITY: INSIGHT FROM THE GALOR–ZEIRA MODEL. MACROECONOMIC DYNAMICS, 1-31 [10.1017/S1365100518000652].

WORLD INTEREST RATES AND INEQUALITY: INSIGHT FROM THE GALOR–ZEIRA MODEL

Battisti Michele;Fioroni Tamara
;
Lavezzi Andrea Mario
2019

Abstract

In this paper, we study the relationship between changes in the world interest rate and within-country inequality during the 1985–2005 period in which the world interest rate sharply declined. In line with the predictions of the seminal model of Galor and Zeira [Income distribution and macroeconomics. Review of Economic Studies 60, 35–52], the analysis suggests that the decrease in the world interest rate is associated with a decrease in inequality in poor countries and an increase in inequality in rich ones.
Settore SECS-P/01 - Economia Politica
Battisti Michele, F.T. (2019). WORLD INTEREST RATES AND INEQUALITY: INSIGHT FROM THE GALOR–ZEIRA MODEL. MACROECONOMIC DYNAMICS, 1-31 [10.1017/S1365100518000652].
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/10447/313845
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