@article{ClemensEydamHeinemann2023,
  author    = {Clemens, Marius and Eydam, Ulrich and Heinemann, Maik},
  title     = {Inequality over the business cycle: the role of distributive shocks},
  series = {Macroeconomic dynamics},
  volume    = {27},
  journal   = {Macroeconomic dynamics},
  number    = {3},
  publisher = {Cambridge University Press},
  address   = {Cambridge},
  issn      = {1365-1005},
  doi       = {10.1017/S1365100521000523},
  pages     = {571 -- 600},
  year      = {2023},
  abstract  = {This paper examines how wealth and income inequality dynamics are related to fluctuations in the functional income distribution over the business cycle. In a panel estimation for OECD countries between 1970 and 2016, although inequality is, on average countercyclical and significantly associated with the capital share, one-third of the countries display a pro- or noncyclical relationship. To analyze the observed pattern, we incorporate distributive shocks into an RBC model, where agents are ex ante heterogeneous with respect to wealth and ability. We find that whether wealth and income inequality behave countercyclically or not depends on the elasticity of intertemporal substitution and the persistence of shocks. We match the model to quarterly US data using Bayesian techniques. The parameter estimates point toward a non-monotonic relationship between productivity and inequality fluctuations. On impact, inequality increases in response to TFP shocks but subsequently declines. Furthermore, TFP shocks explain 17\% of inequality fluctuations.},
  language  = {en}
}
@article{EydamQualo2023,
  author    = {Eydam, Ulrich and Qualo, Hannes},
  title     = {Income inequality and taxes},
  series = {Applied economics letters},
  journal   = {Applied economics letters},
  publisher = {Routledge},
  address   = {Abingdon},
  issn      = {1350-4851},
  doi       = {10.1080/13504851.2023.2208328},
  pages     = {1 -- 8},
  year      = {2023},
  abstract  = {Economic literature offers several distinct explanations for the raising income inequality observed in several countries. In the debate about the causes of inequality a growing strand of research focuses on the effects of taxation on income inequality. We contribute to this literature by providing a systematic empirical account of the relationship between income inequality and personal income taxation (PIT) for a set of countries over the period 1981-2005. In order to take alternative explanations into account and to isolate the effects of tax progressivity, we include a wide range of control variables. We address potential reverse causality between inequality and PIT by using the variation in tax schedules of neighbouring countries. Our results confirm a statistically significant negative association between the progressivity of PIT and income inequality. Overall, we find that especially the average and the marginal tax rate have the potential to reduce income inequality. This finding is qualitatively robust across various different empirical specifications.},
  language  = {en}
}
@article{CoviEydam2020,
  author    = {Covi, Giovanni and Eydam, Ulrich},
  title     = {End of the sovereign-bank doom loop in the European Union?},
  series = {Journal of evolutionary economics},
  volume    = {30},
  journal   = {Journal of evolutionary economics},
  number    = {1},
  publisher = {Springer},
  address   = {Berlin ; Heidelberg ; New York},
  issn      = {0936-9937},
  doi       = {10.1007/s00191-018-0576-2},
  pages     = {5 -- 30},
  year      = {2020},
  abstract  = {In this paper we examine the relationship between the default risk of banks and sovereigns, i.e. the 'doom-loop'. Specifically, we try to assess the effectiveness of the implementation of the new recovery and resolution framework in the European Union. We use a panel with daily data on European banks and sovereigns ranging from 2012 to 2016 in order to test the effects of the Bank Recovery and Resolution Directive on the two-way feedback process. We find that there was a pronounced feedback loop between banks and sovereigns from 2012 to 2014. However, after the implementation of the European Banking Union, in 2015/2016, the magnitude of the doom-loop decreased and the spillovers became not statistically significant. Furthermore, our results suggest that the implementation of the new resolution framework is a suitable candidate to explain this finding. Overall, the results are robust across several specifications.},
  language  = {en}
}
@article{CoviEydam2020,
  author    = {Covi, Giovanni and Eydam, Ulrich},
  title     = {Correction to: End of the sovereign-bank doom loop in the European Union?},
  series = {Journal of evolutionary economics},
  volume    = {30},
  journal   = {Journal of evolutionary economics},
  number    = {1},
  publisher = {Springer},
  address   = {New York},
  issn      = {0936-9937},
  doi       = {10.1007/s00191-018-0577-1},
  pages     = {31 -- 38},
  year      = {2020},
  language  = {en}
}