Faculty of Science, Technology and Medicine
Faculty of Law, Economics and Finance
Faculty of Humanities, Education and Social Sciences
Interdisciplinary Centre for Security, Reliability and Trust
Luxembourg Centre for Systems Biomedicine
Luxembourg Centre for Contemporary and Digital History
Luxembourg Centre for European Law
Luxembourg Centre for Socio-Environmental Systems
Inequality in the Bubble Economy : Who Gains, Who Loses?
Abtract
This study develops a model of asset portfolio decisions with heterogeneous individuals, segmented into three wealth groups: poor individuals, who own a house and a mortgage; middle-wealth individuals, who own a house and hold deposits; and rich individuals, who own a house and financial assets. The model shows that excess demand for housing or financial assets generates bubbles on the price of these assets, influencing wealth inequality. Housing bubbles benefit middle-wealth individuals and may reduce overall inequality, while financial asset bubbles primarily benefit the wealthy, exacerbating inequality. The analysis highlights the contrasting effects of housing and financial asset bubbles on wealth distribution across these groups.
About the speaker
Xavier Raurich is a professor of economics at the 8xav福利导航 of Barcelona. His research focuses on economic growth and development. His recent work is organized into three main areas.
The first explores the interplay between economic growth, inequality, and social mobility. The second examines the impact of financial bubbles on economic growth and wealth inequality. The third investigates the relationship between structural change in sectoral composition and economic development.
Language
English
This is a free seminar. Registration is mandatory.
Supported by the Fond National de la Recherche,
Luxembourg (19441346)