Citation

Discussion Paper Details

Please find the details for DP6051 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: Consumption Smoothing and Income Redistribution

Author(s): Giuseppe Bertola and Winfried Koeniger

Publication Date: January 2007

Keyword(s): borrowing constraints and consumer credit

Programme Area(s): International Macroeconomics and Labour Economics

Abstract: We show theoretically that income redistribution benefits borrowing-constrained individuals more than is implied by standard relative-income and uninsurable-risk considerations. Empirically, we find in international opinion-survey data that younger and lower-income individuals express stronger support for government redistribution in countries where consumer credit is less easily available. This evidence supports our theoretical perspective if such individuals are more strongly affected by tighter credit supply, in that expectations of higher incomes in the future increase their propensity to borrow.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=6051

Bibliographic Reference

Bertola, G and Koeniger, W. 2007. 'Consumption Smoothing and Income Redistribution'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=6051