Monetary policy and functional income distribution, 1875-2010
(2016) EKHM52 20161Department of Economic History
- Abstract
- This paper examines the existence of a link between changes in monetary policy and changes in functional income distribution using a panel of up to fourteen countries over the period 1875-2010. It also investigates the potential transmission channels (changes in asset prices, wages, unemployment, and inflation) that explain such a phenomenon. The evidence indicates the presence of a correlation between monetary policy and functional income distribution over the whole period of analysis that is robust across different estimation methods. The effect of monetary policy is not factor biased as its relationship with the capital share of the total economy has changed over time. Indeed, in some periods monetary policy indicators (short-term... (More)
- This paper examines the existence of a link between changes in monetary policy and changes in functional income distribution using a panel of up to fourteen countries over the period 1875-2010. It also investigates the potential transmission channels (changes in asset prices, wages, unemployment, and inflation) that explain such a phenomenon. The evidence indicates the presence of a correlation between monetary policy and functional income distribution over the whole period of analysis that is robust across different estimation methods. The effect of monetary policy is not factor biased as its relationship with the capital share of the total economy has changed over time. Indeed, in some periods monetary policy indicators (short-term interest rates and deviations from a monetary policy rule) are correlated with more income being allocated as capital income, where as in others they are associated with a lower capital share. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/8880726
- author
- Ontaneda Navarrete, David LU
- supervisor
- organization
- course
- EKHM52 20161
- year
- 2016
- type
- H2 - Master's Degree (Two Years)
- subject
- keywords
- income distribution, capital share, monetary policy, interest rate
- language
- English
- id
- 8880726
- date added to LUP
- 2016-06-20 13:10:31
- date last changed
- 2016-06-20 13:10:31
@misc{8880726, abstract = {{This paper examines the existence of a link between changes in monetary policy and changes in functional income distribution using a panel of up to fourteen countries over the period 1875-2010. It also investigates the potential transmission channels (changes in asset prices, wages, unemployment, and inflation) that explain such a phenomenon. The evidence indicates the presence of a correlation between monetary policy and functional income distribution over the whole period of analysis that is robust across different estimation methods. The effect of monetary policy is not factor biased as its relationship with the capital share of the total economy has changed over time. Indeed, in some periods monetary policy indicators (short-term interest rates and deviations from a monetary policy rule) are correlated with more income being allocated as capital income, where as in others they are associated with a lower capital share.}}, author = {{Ontaneda Navarrete, David}}, language = {{eng}}, note = {{Student Paper}}, title = {{Monetary policy and functional income distribution, 1875-2010}}, year = {{2016}}, }