Lecture 23 Slides Long

Lecture 23 Slides Long - Economics 134 ChrisEna Romer...

Info iconThis preview shows pages 1–14. Sign up to view the full content.

View Full Document Right Arrow Icon
L ECTURE ’23 Income’Inequality’and’ Macroeconomic’Behavior’ April’18,’2013’ Economics’134’Chris±na’Romer’ Spring’2013’David’Romer’
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Announcements’ Short’paper’is’due’on’Tuesday,’April’23 rd .’ Remember’to’bring’a’hard’copy’to’lecture’and’to’ submit’your’paper’online.’See’the’instrucEons’in’the’ ‘announcements±’secEon’of’the’course’website.’
Background image of page 2
I.’O VERVIEW
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Top’Decile’Income’Share,’1917–2010’ 25% 30% 35% 40% 45% 50% 1917 1922 1927 1932 1937 1942 1947 1952 1957 1962 1967 1972 1977 1982 1987 1992 1997 2002 2007 Top 10% Income Share Including capital gains Excluding capital gains
Background image of page 4
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
0% 5% 10% 15% 20% 25% 1913 1918 1923 1928 1933 1938 1943 1948 1953 1958 1963 1968 1973 1978 1983 1988 1993 1998 2003 2008 Share of total income accruing to each group Top 1% (incomes above $352,000 in 2010) Top 5-1% (incomes between $150,000 and $352,000) Top 10-5% (incomes between $108,000 and $150,000) Decomposing’the’Top’Decile’Income’Share’
Background image of page 6
The’Race’between’Educa±on’and’Technology’ Technological’change’tends’to’increase’inequality.’ Increases’in’educa±on’tend’to’decrease’inequality.’ In’the’1950s’and’1960s,’the’two’forces’roughly’ balanced.’ Star±ng’around’1970,’increases’in’educa±on’slowed,’ so’the’eFects’of’technological’change’dominated.’
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Background image of page 8
Other’Factors’that’May’Have’Contributed’ Somewhat ’to’the’Rise’in’Inequality’ Weakening’unions’and’falling’relaEve’minimum’ wages.’ Increases’in’internaEonal’trade.’ Changes’in’social’norms.’
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Top’Decile’Income’Share,’1917–2010’ 25% 30% 35% 40% 45% 50% 1917 1922 1927 1932 1937 1942 1947 1952 1957 1962 1967 1972 1977 1982 1987 1992 1997 2002 2007 Top 10% Income Share Including capital gains Excluding capital gains
Background image of page 10
II.’I S ’I NEQUALITY A ’S OURCE OF ’R ECESSIONS AND / OR ’F INANCIAL ’C RISES ?’
Background image of page 11

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Two’Views’of’the’Role’of’Inequality’ Inequality’is’important’for’many’things,’but’it’is’not’ central’to’understanding’short-run’fluctuaEons’and’ Fnancial’crises’ High’levels’of’inequality’cause’recessions’and’crises.’
Background image of page 12
Idea’#1’ Because’the’rich’spend’a’smaller’fracEon’of’their’
Background image of page 13

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 14
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 34

Lecture 23 Slides Long - Economics 134 ChrisEna Romer...

This preview shows document pages 1 - 14. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online