Series: IMF Working Papers
Author(s): Romain Ranciere , and Michael Kumhof
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 November 2010
Keywords: consumption inequality, distributional conflict, leverage, default risk, global solution methods, probability, calibration, survey, Macroeconomics: Consumption, Saving
The paper studies how high leverage and crises can arise as a result of changes in the income distribution. Empirically, the periods 1920-1929 and 1983-2008 both exhibited a large increase in the income share of th...