Title: On the effects of the monetary policy on the income inequality in Japan: Evidence from grouped data
Authors: Martin Feldkircher - Oesterreichische Nationalbank (Austria)
Kazuhiko Kakamu - Kobe University (Japan) [presenting]
Abstract: The effects of the monetary policy on the income inequality in Japan is examined by 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 depending on the monetary policy measure under consideration: A traditional rate increase decreases income inequality, whereas a reduction of asset purchases leads to more inequality. Movements of inflation expectations and equity prices might account for theses differences.