Macroeconomics and inequality

Overview: The Department


Research Area

Macroeconomics and Inequality

Research profile

In the research area “Macroeconomics and Inequality”, we are interested in the European business cycle of economic inequality. For example, we analyze the effect of business cycles on income inequality of large European economies. To answer this research question, we do not only consider aggregated indicators of income inequality such as the Gini-coefficient, but we also analyze the change in the income distribution as a whole. This enables us to obtain a precise picture about which income groups are off better or worse during recessions.  In addition, we also examine how automatic stabilizers influence the income distribution.

An additional source of economic inequality comes from heterogeneous investment behavior of households. Within a project funded by the German Bundesbank, we examine the effect of a long enduring interest rate environment on the investment behavior of households in the stock market. In a subsequent project, we analyze whether monetary policy influences investment behavior of women and men differently, which may lead to a Gender gap in financial wealth.