Workers, capitalists, and the government: fiscal policy and income (re)distribution

• 成果类型: Article
• 署名作者: Cantore, Cristiano; Freund, Lukas B.
• 署名单位: Bank of England; University of Surrey; University of Cambridge
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2021.01.004
• 发表日期: 2021
• 页码: 58-74
• 关键词: Fiscal policy; Heterogeneity; HANK; TANK

摘要

We propose a novel two-agent New Keynesian model to study the interaction of fiscal policy and household heterogeneity in a tractable environment. Workers can save in bonds subject to portfolio adjustment costs; firm ownership is concentrated among capitalists who do not supply labor. The model is consistent with micro data on empirical intertemporal marginal propensities to consume, and it avoids implausible profit income effects on labor supply. Relative to the traditional two-agent model, these features imply, respectively, a lower sensitivity of consumption to the composition of public financing; and smaller fiscal multipliers alongside pronounced redistributive effects.& nbsp; (c) 2021 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/ )