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- W1966208531 abstract "Rising inequality reduced income growth for the bottom 95 percent of the US personal income distribution beginning about 1980. To maintain stable debt to income, this group’s consumption-income ratio needed to decline, which did not happen through 2006, and its debt-income ratio rose dramatically, unlike the ratio for the top 5 percent. In the Great Recession, the consumption-income ratio for the bottom 95 percent did finally decline, consistent with tighter borrowing constraints, while the top 5 percent ratio rose, consistent with consumption smoothing. We argue that higher inequality and the associated demand drag helps explain the slow recovery." @default.
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- W1966208531 date "2013-01-01" @default.
- W1966208531 modified "2023-09-29" @default.
- W1966208531 title "Inequality and Household Finance During the Consumer Age" @default.
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- W1966208531 doi "https://doi.org/10.2139/ssrn.2205524" @default.
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