Documents Charpe, Matthieu 4 results

"This paper estimates the impact of inequality on growth, focusing on non-linearity and using top income share data that provides us with yearly observations over a long time period. A first result is that the relationship between inequality and growth is non-linear in contrast with most existing studies which focus on a linear relationship. Using panel threshold regression and panel smooth threshold regression methods, we show that the impact of inequality on growth is negative but the effect is larger when inequality is low. This result differs from existing work that stresses either a positive effect using linear estimation or a concave relationship using simple non-linearity. Lastly, heterogeneity across countries is related to the magnitude and the timing of the change in the elasticity."

"Lower labour costs have ambiguous effects on domestic and foreign output in the presence of a transmission channel linking real wages with consumption and savings decisions of households. This transmission channel takes place via credit constrained households. The main result is that lowering labour costs in the home country has a positive impact on the domestic economy as the competitiveness effect dominates the lower labour income/lower domestic consumption effect. However, lower labour costs may produce a significant beggar-thy-neighbour effect in the open economy case for a large set of parameters. The relative strength of the beggar-thy-neighbour effect depends in particular on the relative size of the two households' populations, on home bias and the substitution between home and foreign goods, as well as on the reaction of monetary policy to inflation. Lastly, lowering labour costs in the home country is detrimental to both the home country and the foreign country in the presence of a zero lower bound in the nominal interest rate."

"This paper establishes some stylized facts of the long run relationship between growth and labor shares using historical data for the United States (1898-2010), the United Kingdom (1856-2010), and France (1896-2010). Performing individual country time-frequency analysis, we demonstrate the existence of long-term cycles in labor share of thirty to fifty years explaining a major part of the variance in the data. Further, the impact of labor share on growth changes sign with the frequency considered from negative at high frequencies to positive at low frequencies. Finally, the positive coefficient associated with the labor share at low frequencies increases over time."