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.
|Titolo:||World Interest Rates and Inequality: Insight from the Galor - Zeira Model|
FIORONI, Tamara (Corresponding)
|Data di pubblicazione:||2020|
|Appare nelle tipologie:||01.01 Articolo in Rivista|