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Yamada Tomoaki
Department Undergraduate School , School of Commerce Position Professor |
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| 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. |