Income Inequality and Growth: Calibration and Simulation for the Kenyan Economy
| dc.contributor.author | Mbara, Gilbert | |
| dc.date.accessioned | 2024-04-10T13:55:55Z | |
| dc.date.available | 2024-04-10T13:55:55Z | |
| dc.date.issued | 2024-04-10 | |
| dc.description.abstract | We investigate the notable decline in wealth and income inequality in Kenya over the 10-year period between 2005 and 2015. Using a calibrated continuous time heterogeneous agent model, we attribute up to 92% of the variation in top wealth inequality to a persistent but slow increase in the return to capital, a low risk free rate, and rising “effective” income tax rates. Our study suggests that a macroeconomic environment characterized by low risk-free interest rates anchored by low debt-to fiscal revenue ratios are key to reducing both wealth and income inequality. | |
| dc.identifier.uri | https://publication.aercafricalibrary.org/handle/123456789/3765 | |
| dc.language.iso | en | |
| dc.publisher | African Economic Research Consortium | |
| dc.title | Income Inequality and Growth: Calibration and Simulation for the Kenyan Economy | |
| dc.type | Article |