2012
DOI: 10.2753/jei0021-3624460107
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Income Distribution and Consumption Driven Growth: How Consumption Behaviors of the Top Two Income Quintiles Help to Explain the Economy

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Cited by 22 publications
(8 citation statements)
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“…Contrary to what we assume here, for Wunder (), rentiers tend to increase their propensity to save during recessions. Wunder () explains that rentiers try to offset the fall in their wealth by increasing their savings. As soon as their wealth to income ratio has recovered to the precrisis level, rentiers return to their precrisis propensity to save.…”
Section: An Alternative Proposal: the Role Of Rentierscontrasting
confidence: 95%
See 2 more Smart Citations
“…Contrary to what we assume here, for Wunder (), rentiers tend to increase their propensity to save during recessions. Wunder () explains that rentiers try to offset the fall in their wealth by increasing their savings. As soon as their wealth to income ratio has recovered to the precrisis level, rentiers return to their precrisis propensity to save.…”
Section: An Alternative Proposal: the Role Of Rentierscontrasting
confidence: 95%
“…In short, unlike rentiers who decrease their propensity to save during recessions, workers seem to raise their propensity to save, be it voluntarily (precautionary saving) or not (credit restrictions). At the aggregate level, Maki and Palumbo () and Wunder (, p. 183) argue that, in the United States, the macroeconomic propensity to save is determined by the behaviour of rentiers, since, because of rising inequality, their income weighs more than low‐income households on changes in aggregate income:
the consumption decisions of the top and second highest quintiles may account for much of what is happening in the economy today. Together these top two quintiles accounted for 70% of the GDP controlled by households.
…”
Section: An Alternative Proposal: the Role Of Rentiersmentioning
confidence: 99%
See 1 more Smart Citation
“…As Timothy A. Wunder (2012) argued, unequal household incomes can generate disparities in consumption and savings behaviors. For the top earning households, increased incomes lead to increasing savings, while for lowest earners, it can lead to an increased debt as a result of trying to maintain consumption expenditures (Holt and Greenwood 2010;Wisman 2009).…”
Section: Finding the Causes Of The Eurozone Debt Growthmentioning
confidence: 99%
“…Likewise, focusing on the United States, different authors consider growing income inequalities that contributed to the recent crisis (e.g. Brown 2008; Barba and Pivetti 2009;Wisman 2009Wisman , 2013Holt 2010, 2012;Rajan 2010;Wunder 2012;Cynamon and Fazzari 2016;Scott and Pressman 2015).…”
mentioning
confidence: 99%