Wealth Inequality and Return Heterogeneity During the COVID-19 Pandemic

Kartashova, Katya; Zhou, Xiaoqing

doi:10.24149/wp2114

Cited by 3 publications

(1 citation statement)

References 21 publications

(56 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Since the 2008 financial crisis, the Federal Reserve has ballooned their balance sheet from 900 billion to today's 8.8 trillion while maintaining interest rates at record low levels for nearly two decades. Although the FED's chair reiterated that their action "absolutely" does not widen the wealth gap in America, many papers, such as Kuhn et al [1]; Davis [2]; Kartashova et al [3]; and Coibion et al [4], have found conclusive evidence that the FED's monetary policy has widened the wealth gap of Americans.…”

Section: Introductionmentioning

confidence: 99%

The Effect of Federal Reserves Monetary Policy on Wealth Inequality During COVID-19

2023

AEMPS

View full text Add to dashboard Cite

The term wealth in wealth inequality is referred to the total asset of a household, and the wealth inequality implies the uneven distribution of wealth within a community. While many papers have discussed and investigated the change in wealth inequality in the past, this paper aims to investigate the change in wealth inequality during the COVID-19 pandemic (Q4 2019 to Q2 2022) in the United States. This approach was to take a snapshot of the wealth distribution of the top 0.1% and the bottom 50% at the start of Q4 2019 and forecast the change in wealth from changes in asset prices. Conclusive evidence from this paper and from prior research indicates that wealth inequality and the Federal Reserves monetary policy are inversely proportional; in other words, as the FED loosens its policy, wealth inequality expands.

show abstract

Section: Introductionmentioning

confidence: 99%

The Effect of Federal Reserves Monetary Policy on Wealth Inequality During COVID-19

2023

AEMPS

View full text Add to dashboard Cite

show abstract

The accuracy of homeowners’ valuations in the twenty-first century

Dreesen

Damen²

2022

Empir Econ

View full text Add to dashboard Cite

We study the accuracy of homeowners' self-reported estimates using data from the 2001-2019 American Housing Survey. By comparing sellers' estimates with deflated transaction prices for the same properties, we find evidence that American sellers overestimate the value of their homes by 1.3% on average. The mean absolute error is equal to 15.6%. Correcting for selection bias, we find that the (absolute) valuation error is strongly related to several household characteristics, most importantly marriage and education. Moreover, we find that housing market conditions such as recent local price growth and volatility are important determinants for the size and direction of the error. In particular, volatility in house prices decreases the accuracy of homeowners in estimating their property's value. Our results imply that transaction prices are preferred over self-assessed values in several applications such as wealth estimations and hedonic price models.

show abstract

Posttraumatic Growth: The Role of Health and Financial Difficulties During a Pandemic

Rauvola,

Rudolph,

Zacher

2024

Journal of Personality

View full text Add to dashboard Cite

ObjectiveTrauma can have a range of effects on individuals over time, including the potential for positive changes in favorable outcomes commonly referred to as posttraumatic growth. The posttraumatic growth literature has been criticized for various methodological limitations and has largely neglected the exploration of factors that may strengthen or weaken posttraumatic growth trajectories. The present study contributes to this literature by investigating trajectories of five dimensions of posttraumatic growth during the COVID‐19 pandemic and the moderating effects of health and financial difficulties on these trajectories.MethodLongitudinal data were collected monthly between July 2020 and December 2022 from a sample of employed adults in Germany, involving N = 1678 participants over 30 time points (Nobservations = 29,552).ResultsResults suggest that certain dimensions of posttraumatic growth showed significant increases (i.e., relationships) or decreases (i.e., spirituality and possibilities) over time and that trajectories of three dimensions (i.e., relationships, appreciation, and strength) demonstrated distinctive patterns of interaction with health and financial difficulties.ConclusionsFindings are discussed in the context of the pandemic as well as dynamic theories of personality and identity, with implications for advancing posttraumatic growth theory and research.

show abstract

Wealth Inequality and Return Heterogeneity During the COVID-19 Pandemic

Cited by 3 publications

References 21 publications

The Effect of Federal Reserves Monetary Policy on Wealth Inequality During COVID-19

The Effect of Federal Reserves Monetary Policy on Wealth Inequality During COVID-19

The accuracy of homeowners’ valuations in the twenty-first century

Posttraumatic Growth: The Role of Health and Financial Difficulties During a Pandemic

Contact Info

Product

Resources

About