Inequality and aggregate demand in the IS-LM and IS-MP models
Calvert Jump, Robert ORCID: 0000-0002-2967-512X (2017) Inequality and aggregate demand in the IS-LM and IS-MP models. Bulletin of Economic Research, 70 (3). pp. 269-276. ISSN 0307-3378 (Print), 1467-8586 (Online) (doi:https://doi.org/10.1111/boer.12134)
Full text not available from this repository. (Request a copy)Abstract
This paper presents an extension to the textbook IS‐LM and IS‐MP models that allows the short run effects of an increase in household income inequality to be studied in a simple manner. The income distribution is assumed to be log‐normal, and the coefficient of variation of income is assumed to be exogenous. The latter is used as the measure of income inequality, and enters otherwise standard IS and LM curves in a straightforward manner. While the models are highly stylised, they can easily be extended to more complicated variants.
Item Type: | Article |
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Uncontrolled Keywords: | inequality, IS‐LM, IS‐MP, E10, D31, A20 |
Subjects: | H Social Sciences > HB Economic Theory |
Faculty / School / Research Centre / Research Group: | Faculty of Business Faculty of Business > Department of International Business & Economics Faculty of Business > Institute of Political Economy, Governance, Finance and Accountability (IPEGFA) |
Last Modified: | 21 Oct 2020 11:16 |
URI: | http://gala.gre.ac.uk/id/eprint/25269 |
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