{"id":58367,"date":"2023-12-01T20:23:48","date_gmt":"2023-12-01T19:23:48","guid":{"rendered":"https:\/\/www.wifo.ac.at\/publication\/wealth-inequality-and-aggregate-demand-2\/"},"modified":"2025-10-22T22:23:02","modified_gmt":"2025-10-22T20:23:02","slug":"wealth-inequality-and-aggregate-demand-2","status":"publish","type":"publication","link":"https:\/\/www.wifo.ac.at\/en\/publication\/58367\/","title":{"rendered":"Wealth Inequality and Aggregate Demand"},"content":{"rendered":"","protected":false},"featured_media":0,"template":"","class_list":["post-58367","publication","type-publication","status-publish","hentry"],"acf":{"subtitle":"","text":"The paper investigates how including the distribution of wealth changes the demand effects of redistributing functional income. It develops a model with an endogenous wealth distribution and shows that the endogenous rise in wealth inequality resulting from a redistribution toward profits weakens the growth effects of this redistribution. Consequently, a wage-led regime becomes more strongly wage-led. A profit-led regime on the other hand becomes less profit-led and there may even be a regime switch\u2013\u2013in this case the short-run profit-led economy becomes wage-led in the long run due to the endogenous effects of wealth inequality. The paper thereby provides a possible explanation for the instability of demand regimes over time.","onlinedate":"2021-01-07 01:00:00","lang":"English","publication_series":"","publication_date":"20210107","publication_date_year":"","publication_date_full":true,"publication_num_pages":"","keywords":"[\"aggregate demand\",\"distribution\",\"wealth\",\" distribution\",\" wealth\"]","jelcodes":"[\"D31\",\"D33\",\"E12\",\"E21\",\"E25\",\"E64\"]","related_publications":"[\"460762b0-c034-4b13-b7bd-9f9115bdfb8d\"]","pdf":null,"zip":null,"link":"https:\/\/doi.org\/10.1111\/meca.12326","monthly_report":false,"monthly_report_main":false,"monthly_report_volume":"72","monthly_report_pages":"405-424","monthly_report_pages_sort":"405","issue":"2","journal":"Metroeconomica","publisher":"","invisible":false,"external":true,"embargo_date":null,"types":[83083],"research_groups":[3500],"collaboration":"","persons":[3567,17197],"persons_data":"[{\"personId\":3567,\"personName\":\"Stefan Ederer\",\"organisationNames\":[]},{\"personId\":17197,\"personName\":\"Miriam Rehm\",\"organisationNames\":[\"UDE\"]}]","clients":[],"subclients":[],"partners":[],"topics":[],"host_publication_title":"","host_publication_subtitle":"","place_of_publication":"","host_publication_editors":"[]","type_description":"","output_media":"","chapter":"","article_number":"","scientific_assistance":"[]","scientific_review":"[]","version":"","release_date":null,"expiration_date":null,"surveyor":"","research_assistance":"","edv":"","additional_info_de":"","additional_info_en":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.3 (Yoast SEO v27.3) - 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