Publicação
An empirical assessment of monetary policy channels on income and wealth disparities
| Resumo: | Our paper aims at analysing the relation between monetary policy and its transmission channels on both income and wealth inequality for the Euro Area. We analysed three different channels identified by the literature (Income, Portfolio and Earnings Heterogeneity) that might explain how monetary policy decisions may affect wealth and income distribution. In this empirical research we also set up a fourth regression combining all our selected explanatory variables with the goal of studying the impact of the aforementioned channels combined. For income inequality we analysed four different measures, namely Gini of disposable income (GDI), Gini of market income (GMI), share of income held by the top 1% and the share of income of the top 10% of society. In what regards to wealth inequality due to lack of data we had to create an alternative measure that can both translate the unequal savings rate of the Euro Area countries and evaluate the pace of capital accumulation in order to shed a light on the gap between high-income and low-income household’s annual savings. So that our study could be conducted we developed an unbalanced panel data analysis for the Eurozone countries between 1999 and 2017. The results we reached led us to conclude that the increase in asset prices, mainly equity, seems to be relevant to explain an increase in income inequality. However, it seems that the positive impact that MP had on unemployment by reducing it, contributed to avoid a higher increase on income inequality in the Euro Area. |
|---|---|
| Autores principais: | Alves, José |
| Outros Autores: | Silva, Tomás |
| Assunto: | Income inequalities Wealth inequalities Monetary Policy Transmission Channels |
| Ano: | 2020 |
| País: | Portugal |
| Tipo de documento: | working paper |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Universidade de Lisboa |
| Idioma: | inglês |
| Origem: | Repositório da Universidade de Lisboa |
| _version_ | 1866809572400824320 |
|---|---|
| author | Alves, José |
| author2 | Silva, Tomás |
| author2_role | author |
| author_facet | Alves, José Silva, Tomás |
| author_role | author |
| contributor_name_str_mv | Repositório Científico de Acesso Aberto da ULisboa |
| country_str | PT |
| creators_json_txt | [{\"Person.name\":\"Alves, José\"},{\"Person.name\":\"Silva, Tomás\"}] |
| datacite.contributors.contributor.contributorName.fl_str_mv | Repositório Científico de Acesso Aberto da ULisboa |
| datacite.creators.creator.creatorName.fl_str_mv | Alves, José Silva, Tomás |
| datacite.date.Accepted.fl_str_mv | 2020-09-01T00:00:00Z |
| datacite.date.available.fl_str_mv | 2020-09-29T16:47:46Z |
| datacite.date.embargoed.fl_str_mv | 2020-09-29T16:47:46Z |
| datacite.rights.fl_str_mv | http://purl.org/coar/access_right/c_abf2 |
| datacite.subjects.subject.fl_str_mv | Income inequalities Wealth inequalities Monetary Policy Transmission Channels |
| datacite.titles.title.fl_str_mv | An empirical assessment of monetary policy channels on income and wealth disparities |
| dc.contributor.none.fl_str_mv | Repositório Científico de Acesso Aberto da ULisboa |
| dc.creator.none.fl_str_mv | Alves, José Silva, Tomás |
| dc.date.Accepted.fl_str_mv | 2020-09-01T00:00:00Z |
| dc.date.available.fl_str_mv | 2020-09-29T16:47:46Z |
| dc.date.embargoed.fl_str_mv | 2020-09-29T16:47:46Z |
| dc.format.none.fl_str_mv | application/pdf |
| dc.identifier.none.fl_str_mv | http://hdl.handle.net/10400.5/20408 |
| dc.language.none.fl_str_mv | eng |
| dc.publisher.none.fl_str_mv | ISEG - REM - Research in Economics and Mathematics |
| dc.rights.none.fl_str_mv | http://purl.org/coar/access_right/c_abf2 |
| dc.subject.none.fl_str_mv | Income inequalities Wealth inequalities Monetary Policy Transmission Channels |
| dc.title.fl_str_mv | An empirical assessment of monetary policy channels on income and wealth disparities |
| dc.type.none.fl_str_mv | http://purl.org/coar/resource_type/c_8042 |
| description | Our paper aims at analysing the relation between monetary policy and its transmission channels on both income and wealth inequality for the Euro Area. We analysed three different channels identified by the literature (Income, Portfolio and Earnings Heterogeneity) that might explain how monetary policy decisions may affect wealth and income distribution. In this empirical research we also set up a fourth regression combining all our selected explanatory variables with the goal of studying the impact of the aforementioned channels combined. For income inequality we analysed four different measures, namely Gini of disposable income (GDI), Gini of market income (GMI), share of income held by the top 1% and the share of income of the top 10% of society. In what regards to wealth inequality due to lack of data we had to create an alternative measure that can both translate the unequal savings rate of the Euro Area countries and evaluate the pace of capital accumulation in order to shed a light on the gap between high-income and low-income household’s annual savings. So that our study could be conducted we developed an unbalanced panel data analysis for the Eurozone countries between 1999 and 2017. The results we reached led us to conclude that the increase in asset prices, mainly equity, seems to be relevant to explain an increase in income inequality. However, it seems that the positive impact that MP had on unemployment by reducing it, contributed to avoid a higher increase on income inequality in the Euro Area. |
| dirty | 0 |
| eu_rights_str_mv | openAccess |
| format | workingPaper |
| fulltext.url.fl_str_mv | https://repositorio.ulisboa.pt/bitstreams/970bcd2c-c2c7-4b15-ae4c-896786af4f70/download |
| funding.funder.alternateName_str_mv | FCT |
| funding.funder.identifier_str_mv | http://doi.org/10.13039/501100001871 |
| funding.funder.name_str_mv | Fundação para a Ciência e a Tecnologia |
| funding.name_str_mv | 6817 - DCRRNI ID |
| id | ul_4d73d1e1069ee2c7ffdbb567e67b1d90 |
| identifier.url.fl_str_mv | http://hdl.handle.net/10400.5/20408 |
| instacron_str | ul |
| institution | Universidade de Lisboa |
| instname_str | Universidade de Lisboa |
| language | eng |
| network_acronym_str | ul |
| network_name_str | Repositório da Universidade de Lisboa |
| oai_identifier_str | oai:repositorio.ulisboa.pt:10400.5/20408 |
| organization_str_mv | urn:organizationAcronym:ul |
| person_str_mv | Alves, José Silva, Tomás |
| publishDate | 2020 |
| publisher.none.fl_str_mv | ISEG - REM - Research in Economics and Mathematics |
| reponame_str | Repositório da Universidade de Lisboa |
| repository_id_str | urn:repositoryAcronym:ul |
| service_str_mv | urn:repositoryAcronym:ul |
| spelling | engISEG - REM - Research in Economics and Mathematicspt_PTOur paper aims at analysing the relation between monetary policy and its transmission channels on both income and wealth inequality for the Euro Area. We analysed three different channels identified by the literature (Income, Portfolio and Earnings Heterogeneity) that might explain how monetary policy decisions may affect wealth and income distribution. In this empirical research we also set up a fourth regression combining all our selected explanatory variables with the goal of studying the impact of the aforementioned channels combined. For income inequality we analysed four different measures, namely Gini of disposable income (GDI), Gini of market income (GMI), share of income held by the top 1% and the share of income of the top 10% of society. In what regards to wealth inequality due to lack of data we had to create an alternative measure that can both translate the unequal savings rate of the Euro Area countries and evaluate the pace of capital accumulation in order to shed a light on the gap between high-income and low-income household’s annual savings. So that our study could be conducted we developed an unbalanced panel data analysis for the Eurozone countries between 1999 and 2017. The results we reached led us to conclude that the increase in asset prices, mainly equity, seems to be relevant to explain an increase in income inequality. However, it seems that the positive impact that MP had on unemployment by reducing it, contributed to avoid a higher increase on income inequality in the Euro Area.application/pdfpt_PTAn empirical assessment of monetary policy channels on income and wealth disparitiesAlves, JoséSilva, TomásHostingInstitutionOrganizationalRepositório Científico de Acesso Aberto da ULisboae-mailmailto:repositorio@reitoria.ulisboa.ptrepositorio@reitoria.ulisboa.ptISSNIsPartOf0144-20202020-09-29T16:47:46Z2020-092020-09-01T00:00:00ZHandlehttp://hdl.handle.net/10400.5/20408http://purl.org/coar/access_right/c_abf2open accessIncome inequalitiesWealth inequalitiesMonetary PolicyTransmission Channels1095648 bytesFundação para a Ciência e a TecnologiaResearch in Economics and Mathematics6817 - DCRRNI IDCrossref Funder IDhttp://doi.org/10.13039/501100001871other research producthttp://purl.org/coar/resource_type/c_8042working paperhttp://purl.org/coar/access_right/c_abf2application/pdffulltexthttps://repositorio.ulisboa.pt/bitstreams/970bcd2c-c2c7-4b15-ae4c-896786af4f70/download |
| spellingShingle | An empirical assessment of monetary policy channels on income and wealth disparities Alves, José Income inequalities Wealth inequalities Monetary Policy Transmission Channels |
| status | SINGLETON |
| subject.fl_str_mv | Income inequalities Wealth inequalities Monetary Policy Transmission Channels |
| title | An empirical assessment of monetary policy channels on income and wealth disparities |
| title_full | An empirical assessment of monetary policy channels on income and wealth disparities |
| title_fullStr | An empirical assessment of monetary policy channels on income and wealth disparities |
| title_full_unstemmed | An empirical assessment of monetary policy channels on income and wealth disparities |
| title_short | An empirical assessment of monetary policy channels on income and wealth disparities |
| title_sort | An empirical assessment of monetary policy channels on income and wealth disparities |
| topic | Income inequalities Wealth inequalities Monetary Policy Transmission Channels |
| topic_facet | Income inequalities Wealth inequalities Monetary Policy Transmission Channels |
| url | http://hdl.handle.net/10400.5/20408 |
| visible | 1 |