Original scientific paper
https://doi.org/10.1080/1331677X.2022.2142633
Government debt and household wealth inequality: evidence from China
Qiongzhi Liu
Yun Bai
Abstract
This study attempts to explain the relationship between government
debt and household wealth inequality, and further discusses
possible channels of influence to provide ideas for mitigating the
increasing gap between rich and poor. This study puts forward relevant
assumptions in the theoretical model, further analyses the
composition of household wealth, and verifies that household housing
investment is an essential factor. This study finds that the expansion
of government debt raises the price of housing, leading to
faster wealth growth for wealthy households with relatively more
real estate and widening the gap between rich and poor. This study
argues that in economic development, government debt should be
tilted towards livelihood protection and infrastructure construction,
providing guaranteed housing to eligible relatively poor and narrowing
the gap between rich and poor to a reasonable extent.
Keywords
Government debt; wealth distribution; Gini coefficient; land supply; housing price
Hrčak ID:
306771
URI
Publication date:
30.4.2023.
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