E-viri
PDF
Recenzirano
Odprti dostop
-
Kumhof, Michael; Rancière, Romain; Winant, Pablo
The American economic review, 03/2015, Letnik: 105, Številka: 3Journal Article
The paper studies how high household leverage and crises can be caused by changes in the income distribution. Empirically, the periods 1920-1929 and 1983-2008 both exhibited a large increase in the income share of high-income households, a large increase in debt leverage of low-and middle-income households, and an eventual financial and real crisis. The paper presents a theoretical model where higher leverage and crises are the endogenous result of a growing income share of high-income households. The model matches the profiles of the income distribution, the debt-to-income ratio and crisis risk for the three decades preceding the Great Recession.
