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How does monetary policy affect income inequality in Japan? Evidence from grouped data

Martin Feldkircher, Kazuhiko Kakamu

arXiv 23 Mar 2018 · Econometrics · 3 citations (OpenAlex)

arXiv:1803.08868 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We examine the effects of monetary policy on income inequality in Japan using a novel econometric approach that jointly estimates the Gini coefficient based on micro-level grouped data of households and the dynamics of macroeconomic quantities. Our results indicate different effects on income inequality for different types of households: A monetary tightening increases inequality when income data is based on households whose head is employed (workers' households), while the effect reverses over the medium term when considering a broader definition of households. Differences in the relative strength of the transmission channels can account for this finding. Finally we demonstrate that the proposed joint estimation strategy leads to more informative inference while results based on the frequently used two-step estimation approach yields inconclusive results.

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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Amaral PS (2017) Monetary Policy and Inequality1.00053100%
2Kubota H, Shintani M (2020) High-frequency Identification of Unconventional Monetary Policy Shocks in Japan0.87452100%
3Coibion O, Gorodnichenko Y, Kueng L, Silvia J (2017) Innocent bystanders? Monetary policy and inequality in the U.S0.84333100%
4Mumtaz H, Theophilopoulou A (2017) The impact of monetary policy on inequality in the UK. An empirical analysis0.84333100%
5Inui M, Sudo N, Yamada T (2017) Effects of Monetary Policy Shocks on Inequality in Japan0.81142100%
6Nishino H, Kakamu K, Oga T (2012) Bayesian estimation of persistent income inequality using the lognormal stochastic volatility model0.73732100%
7Saiki A, Frost J (2014) Does unconventional monetary policy affect inequality? Evidence from Japan0.73732100%
8Carriero A, Clark TE, Marcellino M (2018) Measuring uncertainty and its impact on the economy0.64422100%
9Furceri D, Loungani P, Zdzienicka A (2017) The effects of monetary policy shocks on inequality0.64422100%
10Wu JC, Xia FD (2016) Measuring the macroeconomic impact of monetary policy at the zero lower bound0.64422100%

Showing the top 10 of 43 scored citations.

Cited by, within the corpus

arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.

Citing paperIntensityMentionsSections
1Bayesian State-Space Modeling and Model-Based Counterfactual Analysis of Dynamic Income Distributions from Grouped Data0.40511