Yamada Tomoaki
Department Undergraduate School , School of Commerce Position Professor |
|
Language | English |
Publication Date | 2009/11 |
Type | Academic Journal |
Peer Review | Peer reviewed |
Title | Persistence of Income Shocks and Consumption Inequality: A Case in Japan |
Contribution Type | Sole-authored |
Journal | Economics Bulletin |
Volume, Issue, Page | 29(4),pp.2816-2825 |
Details | The present study investigate the relationship between the persistence of uninsurable income shocks and consumption inequality over a household's life cycle in Japan. Using a life cycle model with incomplete asset markets and calibrated parameters for the Japanese economy, we quantitatively show that moderate persistence of shocks generate a nonlinear consumption inequality profile over the life cycle. The moderate persistence of shocks well replicates the pattern of consumption inequality in Japan. |