The distribution of wealth and the marginal propensity to consume

• 成果类型: Article
• 署名作者: Carroll, Christopher; Slacalek, Jiri; Tokuoka, Kiichi; White, Matthew N.
• 署名单位: Johns Hopkins University; European Central Bank; University of Delaware
• 刊物名称: QUANTITATIVE ECONOMICS
• ISSN/ISSBN: 1759-7323
• DOI: 10.3982/QE694
• 发表日期: 2017
• 页码: 977-1020
• 关键词: Wealth distribution; marginal propensity to consume; Heterogeneity; INEQUALITY

摘要

In a model calibrated to match micro- and macroeconomic evidence on household income dynamics, we show that a modest degree of heterogeneity in household preferences or beliefs is sufficient to match empirical measures of wealth inequality in the United States. The heterogeneity-augmented model's predictions are consistent with microeconomic evidence that suggests that the annual marginal propensity to consume (MPC) is much larger than the roughly 0.04 implied by commonly used macroeconomic models (even ones including some heterogeneity). The high MPC arises because many consumers hold little wealth despite having a strong precautionary motive. Our model also plausibly predicts that the aggregate MPC can differ greatly depending on how the shock is distributed across households (depending, e.g., on their wealth, or employment status).