This work presents two different essays on the relevance of endogenous distributions in macroeconomic models. They will discuss two different research questions but a common guideline for policymakers will arise, that refers to the link between the distributional and aggregate effects of macroeconomic policies. The first paper relates to the literature about the role of inequality and heterogeneity in monetary policy and discusses about the inconsistency in the hypothesis of a two-assets structure with an exogenous borrowing constraint on monetary balance: this setup, which is common in this literature (see, e.g., Kaplan et al., 2018), makes debt opportunities independent of net worth (i.e. liquid plus illiquid assets) leading to debatable implications of an expansive monetary policy shock on marginal propensities to consume and private debt. For these reasons, the model in this paper assumes a two-asset structure with a collateral-based borrowing constraint, catching-up with the empirical literature about the non-monotonicity of marginal propensities to consume (e.g. Crawley and Kuckler, 2020) and the rise in private debt during the global financial crisis. The transition dynamics following an unexpected cut in policy rates features a boost in aggregate consumption backed by an increase in private debt and an increase in aggregate durable assets, which sum up into a reduction in net worth inequality (the Gini Index of net worth distribution). In this model, as commonly assumed in the related literature, monetary policy is strictly interconnected with fiscal policy because the Public Sector ensures the monetary balance market equilibrium through taxes/subsidies. For these reasons, and because of the heterogeneity in marginal propensities to consume, the effects of an expansive monetary policy shock are greater when its distributional effects are greater. The second paper shows how the same methodological framework may be applied to a different research question and discusses the issue of setting a minimum wage. Since setting the minimum wage involves a trade-off between reducing inequality and destroying unskilled jobs (Boeri, 2009), the model considers two different types of labour input (skilled, unskilled): similar to Galor and Zeira, 1993, households may become skilled through an indivisible human capital investment; in this way, the investment choice (and, therefore, individual skills) depends on individual wealth. The model in this paper considers a minimum wage setting similar to Dehez and Fitoussi, 1996; in particular, this policy will be strictly interconnected with fiscal policy because the Public Sector subsidizes the representative firm in the model in order to avoid dismissals of unskilled workers. Setting this minimum wage succeeds in boosting aggregate consumption and reducing income inequality, but wealth inequality rises because this policy represents a disincentive to the human capital investment. If the policymaker is interested in reducing wealth inequality it will be necessary to redistribute wealth \emph{una tantum} towards the unskilled individuals, because this will help their dynasties to invest in human capital in the long run. An important implication emerges from the joint reading of these papers: policymakers need to consider the distributional effects of their measures since these actively determine the aggregate effects: endogenous distributions need again a main spot in theoretical models.
Questa tesi presenta due diversi saggi sulla rilevanza delle distribuzioni endogene nei modelli macroeconomici. Questi discuteranno due diverse domande di ricerca ma sorgerà una linea guida comune per i responsabili della politica economica, riguardo il legame tra gli effetti distributivi e aggregati di macroeconomia politiche. Il primo articolo si riferisce alla letteratura sul ruolo della disuguaglianza ed eterogeneità nella politica monetaria e discute l'incoerenza nell’ipotesi di una struttura a due asset con vincolo di indebitamento esogeno: questa configurazione, comune in questa letteratura (si veda, ad esempio, Kaplan et al., 2018), rende le opportunità di debito indipendenti dal patrimonio netto (ad es. attività liquide più illiquide) portando a discutibili implicazioni di una espansione shock di politica monetaria sulle propensioni marginali al consumo e sul debito privato. Per questi motivi, il modello in questo paper presuppone una struttura a due asset con un vincolo di prestito basato sulle garanzie, che si avvicina alla letteratura empirica sulla non monotonia delle propensioni marginali al consumo (es. Crawley e Kuckler, 2020) e l'aumento del debito privato durante la crisi finanziaria del 2007. La dinamica di transizione a seguito di un taglio inaspettato della politica tassi è caratterizzata da un aumento del consumo aggregato sostenuto da un aumento del debito privato e un aumento delle attività durevoli aggregate, che si riassumono in a riduzione della disuguaglianza del patrimonio netto (Indice Gini della distribuzione del patrimonio netto). In questo modello, come comunemente ipotizzato nella letteratura correlata, la politica monetaria è strettamente interconnesso con la politica fiscale perché il settore pubblico garantisce l'equilibrio del mercato dell'equilibrio monetario attraverso tasse / sussidi. Per questi motivi, e per l'eterogeneità delle propensioni marginali al consumo, gli effetti di uno shock espansivo di politica monetaria sono maggiori quando i suoi effetti distributivi sono maggiori. Il secondo paper mostra come lo stesso quadro metodologico può essere utilizzato per una domanda di ricerca diversa e discute la politica di salario minimo. Dal momento che fissare il salario minimo implica un compromesso tra ridurre le disuguaglianze e distruggere i posti di lavoro non qualificati (Boeri, 2009), il modello considera due diversi tipi di input di lavoro (qualificato, non qualificato): in modo simile a Galor e Zeira, 1993, le famiglie possono acquisire competenze attraverso un Investimento indivisibile in capitale umano; in questo modo, la scelta di investimento (e, quindi, le abilità individuali) dipende dalla ricchezza individuale. Il modello in questo paper considera una politica di salarioq minimo simile a quella in Dehez e Fitoussi, 1996; in in particolare, questa politica sarà strettamente interconnessa con la politica fiscale perché il settore pubblico sovvenziona l'azienda rappresentativa nel modello in modo da evitare il licenziamento di lavoratori non qualificati. Questa politica di salario minimo riesce a stimolare il consumo aggregato e ridurre la disparità di reddito, ma la disuguaglianza di ricchezza aumenta perché questa politica rappresenta un disincentivo all'investimento in capitale umano. Se il policymaker è interessato a ridurre la disuguaglianza di ricchezza sarà necessario ridistribuire la ricchezza una tantum verso gli individui non qualificati, perché questo aiuterà le loro dinastie a investire nel capitale umano nel lungo periodo. Un'importante implicazione emerge dalla lettura congiunta di questi articoli: i responsabili politici devono considerare gli effetti distributivi delle loro misure poiché questi determinano attivamente gli effetti aggregati: i modelli teorici devono prevedere la possibilità di distribuzioni endogene.
(2021). Two Essays on Endogenous Distributions in Macroeconomics. (Tesi di dottorato, Università degli Studi di Milano-Bicocca, 2021).
Two Essays on Endogenous Distributions in Macroeconomics
CANNIOTO, FABRIZIO
2021
Abstract
This work presents two different essays on the relevance of endogenous distributions in macroeconomic models. They will discuss two different research questions but a common guideline for policymakers will arise, that refers to the link between the distributional and aggregate effects of macroeconomic policies. The first paper relates to the literature about the role of inequality and heterogeneity in monetary policy and discusses about the inconsistency in the hypothesis of a two-assets structure with an exogenous borrowing constraint on monetary balance: this setup, which is common in this literature (see, e.g., Kaplan et al., 2018), makes debt opportunities independent of net worth (i.e. liquid plus illiquid assets) leading to debatable implications of an expansive monetary policy shock on marginal propensities to consume and private debt. For these reasons, the model in this paper assumes a two-asset structure with a collateral-based borrowing constraint, catching-up with the empirical literature about the non-monotonicity of marginal propensities to consume (e.g. Crawley and Kuckler, 2020) and the rise in private debt during the global financial crisis. The transition dynamics following an unexpected cut in policy rates features a boost in aggregate consumption backed by an increase in private debt and an increase in aggregate durable assets, which sum up into a reduction in net worth inequality (the Gini Index of net worth distribution). In this model, as commonly assumed in the related literature, monetary policy is strictly interconnected with fiscal policy because the Public Sector ensures the monetary balance market equilibrium through taxes/subsidies. For these reasons, and because of the heterogeneity in marginal propensities to consume, the effects of an expansive monetary policy shock are greater when its distributional effects are greater. The second paper shows how the same methodological framework may be applied to a different research question and discusses the issue of setting a minimum wage. Since setting the minimum wage involves a trade-off between reducing inequality and destroying unskilled jobs (Boeri, 2009), the model considers two different types of labour input (skilled, unskilled): similar to Galor and Zeira, 1993, households may become skilled through an indivisible human capital investment; in this way, the investment choice (and, therefore, individual skills) depends on individual wealth. The model in this paper considers a minimum wage setting similar to Dehez and Fitoussi, 1996; in particular, this policy will be strictly interconnected with fiscal policy because the Public Sector subsidizes the representative firm in the model in order to avoid dismissals of unskilled workers. Setting this minimum wage succeeds in boosting aggregate consumption and reducing income inequality, but wealth inequality rises because this policy represents a disincentive to the human capital investment. If the policymaker is interested in reducing wealth inequality it will be necessary to redistribute wealth \emph{una tantum} towards the unskilled individuals, because this will help their dynasties to invest in human capital in the long run. An important implication emerges from the joint reading of these papers: policymakers need to consider the distributional effects of their measures since these actively determine the aggregate effects: endogenous distributions need again a main spot in theoretical models.File | Dimensione | Formato | |
---|---|---|---|
phd_unimib_833160.pdf
accesso aperto
Descrizione: Two Essays on Endogenous Distributions in Macroeconomics
Tipologia di allegato:
Doctoral thesis
Dimensione
1.1 MB
Formato
Adobe PDF
|
1.1 MB | Adobe PDF | Visualizza/Apri |
I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.