Inequality in the Bubble Economy: Who Gains, Who Loses?

15:40-17:00, Friday, November 21, 2025

zoom Meeting (Meeting ID: 899 6762 1679 Password: 810094)

Dr. Xavier RAURICH is now a professor at Department of Economics, Universitat de Barcelona. He Obtained his Ph.D. in Economics at Universitat Autònoma de Barcelona in 1998. His research interests are Macroeconomics, Economic Growth and Development. His articles have been published in Journal of Public Economics, Economic Journal, International Economic Review, among others.

This study develops a model of asset portfolio decisions with heterogeneous individuals, segmented into three wealth groups: poor individuals, who own a house and a mortgage; middle-wealth individuals, who own a house and hold deposits; and rich individuals, who own a house and financial assets. The model shows that excess demand for housing or financial assets generates bubbles on the price of these assets, influencing wealth inequality. Housing bubbles benefit middle-wealth individuals and may reduce overall inequality, while financial asset bubbles primarily benefit the wealthy, exacerbating inequality. The analysis highlights the contrasting effects of housing and financial asset bubbles on wealth distribution across these groups.

For more information of the seminar, scan the following QR code(s) to join Tencent QQ group (904 544 292) or WeChat group named "IAER Seminar (4)", please.

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(QR code is valid until November 25, 2025)