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.
Lingua originale | English |
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pagine (da-a) | 1-31 |
Numero di pagine | 31 |
Rivista | Macroeconomic Dynamics |
Stato di pubblicazione | Published - 2019 |
All Science Journal Classification (ASJC) codes
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