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Inequality, Recessions and Recoveries

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  • Fabrizio Perri

    (University of Minnesota)

Abstract

This generalized stagnation is apparent also in the distribution of expenditures, which have been falling uniformly across the entire distribution. In the final part of the paper we have followed households through time to ask whether redistribution can also shield individual households from adverse shocks to private resources. The answer to the question is no. As the Great Recession has progressed there has been more redistribution, but at the same time households have lost the ability of self insure against shocks, and shocks to their disposable resources have affected their expenditures.

Suggested Citation

  • Fabrizio Perri, 2014. "Inequality, Recessions and Recoveries," 2014 Meeting Papers 1377, Society for Economic Dynamics.
  • Handle: RePEc:red:sed014:1377
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