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KDI 경제교육·정보센터

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한국관련자료
Modelling the Dynamic Effects of Inequality
NIESR
2026.05.11
This paper sets out a methodology to add income quintiles into the National Institute’s Global Econometric Model (NiGEM) to capture the dynamic impacts of inequality. It then explores these dynamics by simulating fiscal policies of redistribution, as well as what the effect of lowering inequality may be.

While most HANK models in the literature are built within a DSGE framework, NiGEM is best described as a semi-structural large-scale macro-econometric model. This makes it well suited for policy-focussed scenario analysis and forecasting. Augmenting NiGEM with income inequality, as this paper does, provides richer simulation results and feedback channels between changes in income inequality and the macroeconomy. It also lays the foundational tools for future work, as NiGEM can flexibly simulate many different scenarios - under different policy environments and expectations settings - with a wide range of policy applications. Incorporating inequality in this way enriches these scenarios.