Quotation Crespo Cuaresma, Jesus, Kubala, Jozef, Petrikova, Kristina. 2018. Does income inequality affect aggregate consumption? Revisiting the evidence. Empirical Economics, 55, (2), 905-912.




The standard Keynesian view predicts that equalization of the income distribution leads to an increase in aggregate consumption. We revisit the analysis carried out by the seminal empirical contributions which test such a hypothesis using modern econometric methods and the most comprehensive dataset existing on income distribution measures. Our results indicate that there is no empirical evidence of a negative effect of income inequality on aggregate consumption.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Empirical Economics
Citation Index SSCI
WU-Journal-Rating new VW-D
Language English
Title Does income inequality affect aggregate consumption? Revisiting the evidence
Volume 55
Number 2
Year 2018
Page from 905
Page to 912
Reviewed? Y
DOI http://dx.doi.org/10.1007/s00181-017-1302-x
Open Access Y
Open Access Link https://link.springer.com/article/10.1007%2Fs00181-017-1302-x


Crespo Cuaresma, Jesus (Details)
Kubala, Jozef (University of Economics, Bratislava, Slovakia)
Petrikova, Kristina (University of Economics, Bratislava, Slovakia)
Department of Economics (Crespo Cuaresma) (Details)
Research Institute for Human Capital and Development FI (Former organization)
Competence Center for Sustainability Transformation and Responsibility WE (Details)
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