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

Reading Between the Lines: A Quantitative Analysis of Colombia’s Central Bank Minutes
Pedro Pablo Calderon-Camacho, Celina Gaitán-Maldonado, Nicolle Valentina Herrera-Pinto, Mario A. Ramos-Veloza
Inflation Drivers in Colombia: A Hemisphere Neural Network Approach
Franky Juliano Galeano-Ramírez, Nicolás Martínez-Cortés, Hernán Dario Perdomo-Sánchez, Marlon Salazar
Tax reforms and the labor market in an emerging market economy
Catalina Granda-Carvajal, Jesús Enrique Morales-Piñero

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%.