Aggregate implications of the progressivity of fiscal transfers : a heterogeneous-agents approach
Autor corporativo
dc.contributor
Universidad de Chile, Facultad de Economía y Negocios, Escuela de Postgrado
es_ES
Professor Advisor
dc.contributor.advisor
Engel Goetz, Eduardo
Professor Advisor
dc.contributor.advisor
Pastén Herrera, Ernesto
Author
dc.contributor.author
Eggers Prieto, Carlos
Admission date
dc.date.accessioned
2023-04-26T19:34:02Z
Available date
dc.date.available
2023-04-26T19:34:02Z
Publication date
dc.date.issued
2022
Identifier
dc.identifier.uri
https://repositorio.uchile.cl/handle/2250/193035
Abstract
dc.description.abstract
This paper introduces the progressivity of fiscal transfers into an otherwise standard heterogeneousagents (HA) model and shows how this feature has a significant effect on the aggregate dynamics
following the windfall of fiscal transfers. A larger Marginal Propensity to Consume (MPC) in
the lower part of the income and wealth distribution implies that more progressivity generates
a stronger response of consumption and a weaker response of investment, which leads to less
capital accumulation after the windfall. This paper has two main contributions. First, it studies the progressivity effects using a model in which the distribution of MPCs is endogenous, as
opposed to the usual assumptions found in the previous literature that explores transitional dynamics. The second contribution is a relatively simple method to analyze distributional aspects
of fiscal policy in continuous-time HA models, that has rich economic interpretation besides
progressivity.
es_ES
Lenguage
dc.language.iso
en
es_ES
Publisher
dc.publisher
Universidad de Chile
es_ES
Type of license
dc.rights
Attribution-NonCommercial-NoDerivs 3.0 United States