Wealth inequality in dynamic stochastic general equilibrium models
| Název práce v češtině: | Nerovnost bohatství v dynamických stochastických modelech všeobecné rovnováhy |
|---|---|
| Název v anglickém jazyce: | Wealth inequality in dynamic stochastic general equilibrium models |
| Klíčová slova: | DSGE modelování, nerovnost bohatství, rozpočtová politika, heterogenní agenti |
| Klíčová slova anglicky: | DSGE modelling, wealth inequality, fiscal policy, heterogeneous agents |
| Akademický rok vypsání: | 2012/2013 |
| Typ práce: | diplomová práce |
| Jazyk práce: | angličtina |
| Ústav: | Institut ekonomických studií (23-IES) |
| Vedoucí / školitel: | doc. PhDr. RNDr. Josef Stráský, Ph.D. |
| Řešitel: | skrytý - zadáno vedoucím/školitelem |
| Datum přihlášení: | 18.06.2013 |
| Datum zadání: | 21.06.2013 |
| Datum a čas obhajoby: | 24.06.2014 00:00 |
| Místo konání obhajoby: | ies |
| Datum odevzdání elektronické podoby: | 15.05.2014 |
| Datum proběhlé obhajoby: | 24.06.2014 |
| Oponenti: | doc. PhDr. Martin Gregor, Ph.D. |
| Kontrola URKUND: | |
| Zásady pro vypracování |
| The thesis will focus on modeling inequality within the DSGE framework. Model which incorporates inequality as one of the exogenous variables will be constructed and its performance will be compared to a model with no inequality. Model will feature heterogeneous agents which differ in their ownership of capital in the economy. Translation of wealth inequality into income and consumption inequality and possible impacts on other main macroeconomic variables (namely investment) will be studied.
The thesis will be an extension and generalization of a baseline model described by Kumhof and Ranciére (2010). In comparison to their model, the inequality parameter will vary and it will be studied how the degree of inequality influences the model. In addition, fiscal policy which tries to counter the possible negative effects of wealth inequality will be investigatied and. Finally, different tax schemes will be considered and it will be discussed whether such tax schemes can substitute the removal of the underlying inequality. |
| Seznam odborné literatury |
| Gali, J. (2008), Introduction to Monetary Policy, Inflation, and the Business Cycle: An Introduction to the New Keynesian Framework, Princeton University Press, 208 p., ISBN: 9780691133164.
Heathcote,J., Perri, F. and Violante G.L. (2010), Unequal We Stand: An Empirical Analysis of Economic Inequality in the United States: 1967-2006, Review of Economic Dynamics, 13(1), 15-51. King, R., C. Plosser, and S. Rebelo (1988). Production, Growth and Business Cycles I: The Basic Neoclassical Model, Journal of Monetary Economics, 21, 195-232. Krueger, D. and Perri, F. (2006), “Does Income Inequality Lead to Consumption Inequality? Evidence and Theory”, Review of Economic Studies, 73(1), 163-193. Kumhof, M. and Rancière, R. (2010), Inequality, Leverage and Crises, IMF Working Papers, WP/10/268. Kumhof, M et al. (2012), Income Inequality and Current Account Imbalances, IMF Working Papers, WP/12/08. Lim, G.C. and McNelis P. D. (2011), Alternative Government Spending Rules: Effects on Income Inequality and Welfare, Macroeconomic Dynamics, 5, 1-23. |
| Předběžná náplň práce |
| Standard DSGE model will be constructed and estimated. The economy will consist of two kinds of households – rich and poor ones, which will differ in the ownership of capital. This results in unequal distribution of capital income throughout the economy and creates disturbances in the economy.
The closed economy model will incorporate three sectors (parts of GDP) – consumption, investment and government.The government will use redistribution policies to counter the negative effects of wealth inequality. The thesis will use an equilibrium approach with one unique equilibrium, which is given by the estimation methodology which uses approximation around the steady state. The resulting system of differential equations will be solved via the Dynare toolkit in Matlab. Tentative content: 1. Introduction 2. Literature review and discussion of inequality in general from both theoretical and empirical perspectives 3. Model description 4. Calibration and model solution 5. Presentation and discussion of results, graphical outcomes – simulated series, impulse responses 6. Discussion of alternatives, sensitivity analysis 7. Conclusion |
| Předběžná náplň práce v anglickém jazyce |
| Standard DSGE model will be constructed and estimated. The economy will consist of two kinds of households – rich and poor ones, which will differ in the ownership of capital. This results in unequal distribution of capital income throughout the economy and creates disturbances in the economy.
The closed economy model will incorporate three sectors (parts of GDP) – consumption, investment and government.The government will use redistribution policies to counter the negative effects of wealth inequality. The thesis will use an equilibrium approach with one unique equilibrium, which is given by the estimation methodology which uses approximation around the steady state. The resulting system of differential equations will be solved via the Dynare toolkit in Matlab. Tentative content: 1. Introduction 2. Literature review and discussion of inequality in general from both theoretical and empirical perspectives 3. Model description 4. Calibration and model solution 5. Presentation and discussion of results, graphical outcomes – simulated series, impulse responses 6. Discussion of alternatives, sensitivity analysis 7. Conclusion |