Sacrifice ratios and the income distribution: Stylized facts for OECD countries

ECONOMICS LETTERS
DOI: 
https://doi.org/10.1016/j.econlet.2023.111329
Published: 
Authors:
Laura Acevedoa,
Marc Hofstettere
Download document

The most recent

Neural Network Equilibrium Real Exchange Rate
Marlon Salazar, Andrés Salazar-Mejía, Jorge Daniel Guevara-Acevedo, Juan David Duitama-Correa
Determinants and Forecasting of Colombia's Current Account
Aarón Levi Garavito-Acosta, Wilmer Martinez-Rivera, Camilo González-Sabogal, Johanna Barbosa-Buitrago, Nathaly Vergel-Serrano
Density Estimation and Specification Testing for Nonparametric Regression Models
Zhibiao Zhao, Manuel Darío Hernández-Bejarano

This paper examines the distributional consequences of disinflation by estimating sacrifice ratios  (percentage output losses relative to the change in inflation) for different income quintiles and the top 1% of the income distribution. We find that at the tails of the distribution the average percentage output losses are considerably higher than at the center: 1.7 times greater at the left tail, 2.7 times greater at the top 1%.