Consumption Smoothing and Income Redistribution
Journal
European Economic Review
ISSN
0014-2921
ISSN-Digital
1873-572X
Type
journal article
Date Issued
2007-11
Author(s)
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.
Language
English
Keywords
Consumption Smoothing
Income
Redistribution
Redistribution
HSG Classification
contribution to scientific community
HSG Profile Area
SEPS - Economic Policy
Refereed
Yes
Publisher
Elsevier
Publisher place
Amsterdam
Volume
51
Number
8
Start page
1941
End page
1958
Pages
18
Subject(s)
Eprints ID
235087