Inflation and income inequality in a variety-expansion growth model with menu costs

Zheng, Zhijie, Mishra, Tapas and Yang, Yibai (2020) Inflation and income inequality in a variety-expansion growth model with menu costs. Economics Letters, 194, [109373]. (doi:10.1016/j.econlet.2020.109373).

Record type: Article

Abstract

This study explores the effect of inflation on income inequality in a growth model with variety expansion and menu costs. Inflation is found to determine income inequality via both asset-value and interest-rates effects. Our numerical analyses show that higher inflation turns these effects negative,stifling economic growth and mitigating income inequality.

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Accepted/In Press date: 30 June 2020

e-pub ahead of print date: 3 July 2020

Published date: September 2020

Additional Information: https://doi.org/10.1016/j.econlet.2020.109373

Keywords: Income inequality, Inflation, Menu costs, Variety expansion

Identifiers

Local EPrints ID: 442686

URI: http://eprints.soton.ac.uk/id/eprint/442686

DOI: doi:10.1016/j.econlet.2020.109373

ISSN: 0165-1765

PURE UUID: 9d9078f2-3866-465c-8ea8-c8a90974f7ac

ORCID for Tapas Mishra:

orcid.org/0000-0002-6902-2326

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Date deposited: 23 Jul 2020 16:31

Last modified: 17 Mar 2024 05:44

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Contributors

Author: Zhijie Zheng

Author: Tapas Mishra

Author: Yibai Yang

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