We document a strong empirical relationship between higher income inequality and stronger recessive impacts of fiscal consolidation episodes across time and space. To explain this finding, we develop a life‐cycle economy with uninsurable income risk. We calibrate our model to match key characteristics of several European economies, including inequality and fiscal structures, and study the effects of fiscal consolidation programs. In our model, higher income risk induces precautionary savings behavior, which decreases the proportion of credit‐constrained agents in the economy. These agents have less elastic labor supply responses to fiscal consolidations, which explain the correlation with inequality in the data.

中文翻译：

---

财政合并计划和收入不平等

我们证明，收入不平等加剧与财政整合事件在时间和空间上的更大隐性影响之间存在很强的经验关系。为了解释这一发现，我们开发了具有无法保险的收入风险的生命周期经济。我们校准模型以匹配几个欧洲经济体的主要特征，包括不平等和财政结构，并研究财政合并计划的效果。在我们的模型中，较高的收入风险导致了预防性的储蓄行为，从而降低了经济中受信贷约束的代理商的比例。这些主体对财政合并的劳动力供给弹性较差，这解释了数据不平等的相关性。