scholarly journals Financial and Total Wealth Inequality with Declining Interest Rates

2021 ◽  
Author(s):  
Daniel Greenwald ◽  
Matteo Leombroni ◽  
[email protected] Lustig ◽  
Stijn Van Nieuwerburgh
Keyword(s):  
Interest Rates ◽  
Wealth Inequality ◽  
Total Wealth

scholarly journals Financial and Total Wealth Inequality with Declining Interest Rates

2021 ◽  
Author(s):  
Daniel Greenwald ◽  
Matteo Leombroni ◽  
Hanno Lustig ◽  
Stijn Van Nieuwerburgh
Keyword(s):  
Interest Rates ◽  
Wealth Inequality ◽  
Total Wealth

scholarly journals Financial and Total Wealth Inequality with Declining Interest Rates

2021 ◽  
Author(s):  
Daniel Greenwald ◽  
Matteo Leombroni ◽  
Hanno N. Lustig ◽  
Stijn Van Nieuwerburgh
Keyword(s):  
Interest Rates ◽  
Wealth Inequality ◽  
Total Wealth

Layers of Inequality: Unequal Opportunities and Skin Color in Mexico

2021 ◽  
pp. 003464462110441
Author(s):  
Luis Monroy-Gómez-Franco ◽  
Roberto Vélez-Grajales ◽  
Gastón Yalonetzky
Keyword(s):  
Skin Color ◽  
Wealth Inequality ◽  
Skin Tone ◽  
Inequality Of Opportunity ◽  
Age Cohort ◽  
Parental Wealth ◽  
Unequal Opportunities ◽  
Total Inequality ◽  
Total Wealth ◽  
A Share

We document the contribution of skin color toward quantifying inequality of opportunity over a proxy indicator of wealth. Our Ferreira–Gignoux estimates of inequality of opportunity as a share of total wealth inequality show that once parental wealth is included as a circumstance variable, the share of inequality of opportunity rises above 40%, overall and for every age cohort. By contrast, the contribution of skin tone to total inequality of opportunity remains minor throughout.

Growing Inequality: What Can We Do?

2018 ◽  
Vol 10 (1-3) ◽  
pp. 5-10 ◽  
Author(s):  
Michel Camdessus
Keyword(s):  
Wealth Inequality ◽  
Medium Term ◽  
Education Outcomes ◽  
The Poor ◽  
The World ◽  
Fiscal Space ◽  
Global Initiative ◽  
Emerging And Developing Countries ◽  
Social Turmoil ◽  
Total Wealth

Growing inequality in the world is disturbing. For example, on average, the top 10 percent of the households hold 50 percent of total wealth. Inequality is even higher in emerging and developing countries. Rising inequality in disposable income has adverse consequences on growth over the medium term and leads to growing frustrations and potentially social turmoil. It adversely affects people’s living conditions, societal cohesion, and social mobility. Governments need to tackle rising inequality urgently and create opportunities and advancement for all. They need to invest in human capital and provide the poor with better health services and stronger education. Means-tested transfers focused on young children have often achieved more equitable health and education outcomes. These efforts require increased fiscal space. Increased progressivity in taxation would (within reason) also help reduce inequality. Additionally, a global initiative on inequality, in which countries would commit to implement their own-designed measures to increase the income of the poorest 40 percent faster than the national median, is proposed. Countries would support each other by sharing experiences, while multilateral organizations would help them design their policies. Two global conferences, in 2023 and in 2028, would examine progress and identify the most effective policies.

Wealth Ownership and Inequality in India: A Socio-religious Analysis

2018 ◽  
Vol 4 (2) ◽  
pp. 196-213 ◽  
Author(s):  
Nitin Tagade ◽  
Ajaya Kumar Naik ◽  
Sukhadeo Thorat
Keyword(s):  
Small Proportion ◽  
Wealth Inequality ◽  
National Sample ◽  
Household Wealth ◽  
Religious Group ◽  
Sample Survey ◽  
Religious Groups ◽  
National Sample Survey ◽  
Total Wealth

This article analyses wealth inequality across socio-religious groups in the country and across the states based on the All India Debt and Investment Survey conducted by the National Sample Survey Office in 2013. The result shows that one-fourth of the total wealth is concentrated in the hands of the top 1 per cent households, whereas 75 per cent of the total wealth is concentrated in the top 20 per cent households. On the contrary, a very small proportion of the assets, that is, 3.4 per cent, are owned by the bottom 40 per cent households. The Hindu high castes (HHCs) have the highest ownership of wealth as compared to any other socio-religious group with respect to the share of wealth and average household wealth ownership. Interestingly, HHCs also have the highest inequality as compared to any other group.

scholarly journals WEALTH INEQUALITY: DATA AND MODELS

2008 ◽  
Vol 12 (S2) ◽  
pp. 285-313 ◽  
Author(s):  
Marco Cagetti ◽  
Mariacristina De Nardi
Keyword(s):  
United States ◽  
Wealth Distribution ◽  
Economic Models ◽  
Wealth Inequality ◽  
The United States ◽  
Total Wealth

In the United States wealth is highly concentrated and very unequally distributed: the richest 1% hold one third of the total wealth in the economy. Understanding the determinants of wealth inequality is a challenge for many economic models. We summarize some key facts about the wealth distribution and what economic models have been able to explain so far.

Rural Credit in Ming-Qing Jiangnan and the Concept of Peasant Petty Commodity Production

1996 ◽  
Vol 55 (1) ◽  
pp. 94-117 ◽  
Author(s):  
Ming-te Pan
Keyword(s):  
Interest Rates ◽  
Agricultural Production ◽  
Wealth Inequality ◽  
Credit System ◽  
Rural Credit ◽  
High Interest ◽  
Commodity Production ◽  
Agrarian Societies ◽  
Chinese Peasant ◽  
Means Of Production

The rural credit system in traditional agrarian societies has long been associated with “usury,” and therefore often considered a hindrance to rural development. Three aspects of the traditional rural credit system are used to substantiate this assertion. First, traditional rural credit often entailed interest rates above the ceiling set by law. As early as 1790 b.c., the Laws of Hammurabi established annual interest ceilings of 33.3 percent for grain loans and 20 percent for cash loans. Any loan charging interest beyond the ceiling was illegal (Sowards 1983, 5). To many contemporary scholars, even a ceiling of 20 to 30 percent seems exorbitant: given the low return of traditional farming, peasants could hardly afford to borrow at such high interest rates. Second, from a socioeconomic perspective, high interest rates suggest unequal relations between debtors and creditors. According to Rao, the origin of this unequal relationship lies in market imperfection, or so-called “connectedness”—the link between wealth inequality and the failure-of-markets mechanism (1986). A fragmented and noncompetitive market, this view maintains, facilitates personalized credit transactions which not only extract surplus but also perpetuate peasants' credit dependency on the landlord. This credit dependency, in turn, creates a situation in which compulsive indebtedness gradually deprives the peasantry of the means of production (Bhaduri 1983, chaps. 4, 5). Finally, it is asserted, traditional rural credit had little to do with production. Most peasants used rural credit for consumption purposes, which had destructive effects on agricultural production. Rural credit, in these views, is a siphon that draws resources out of the rural sector, locks peasants into a vicious cycle of debt, creates rural inequality, and hinders production. Scholars who have studied the Chinese peasant economy agree, by and large, that that was the nature of Chinese rural credit system.

Economic effects of monetary policy in Russia: What do large datasets tell us?

2020 ◽  
pp. 31-53 ◽  
Author(s):  
Anna A. Pestova ◽  
Natalia A. Rostova
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Interest Rates ◽  
Economic Activity ◽  
Global Financial Crisis ◽  
Exchange Rate Regime ◽  
Aggregate Demand ◽  
Economic Effects ◽  
Theoretical Concepts ◽  
Empirical Estimates

Is the Bank of Russia able to control inflation and, at the same time, manage aggregate demand using its interest rate instruments? In other words, are empirical estimates of the effects of monetary policy in Russia consistent with the theoretical concepts and experience of advanced economies? This paper is aimed at addressing these issues. Unlike previous research, we employ “big data” — a large dataset of macroeconomic and financial data — to estimate the effects of monetary policy in Russia. We focus exclusively on the period after the 2008—2009 global financial crisis when the Bank of Russia announced the abandoning of its fixed ruble exchange rate regime and started to gradually transit to an interest rate management. Our estimation results do not confirm standard responses of key economic activity and price variables to tightening of monetary policy. Specifically, our estimates do not reveal a statistically significant restraining effect of the Bank of Russia’s policy of high interest rates on inflation in recent years. At the same time, we find a significant deteriorating effect of the monetary tightening on economic activity indicators: according to our conservative estimates, each of the key rate increases occurred in March and December 2014 had led to a decrease in the industrial production index by about 0.2 percentage points within a year.

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