Tae-Sub Yun, A Study on the Impact of Financial Quantitative Easing on Economic Inequality: Using Agent-Based Simulations, PhD Dissertation, Department of Industrial and Systems Engineering, KAIST, 2022 

Abstract

In this thesis, we use agent-based simulation to investigate the effect of finance on distribution and economic inequality. We model several Korean economic systems. Using the proposed models, we examine the expected effects of policies and derive policy implications from the policy experiment results. In the first part of the thesis, we suggest a housing market agent-based model. From the simulation, we examine the impact of finance on households’ living conditions and wealth. As a result, we found that excessive housing finance exacerbates wealth inequality and deteriorates the living conditions of low-income households. In the second part of the thesis, we model the Korean macroeconomic situation. Through the proposed model, we check the impact of corporate finance on the economy. From the simulation results, we confirmed that corporate finance slows economic growth and reduces business dynamism. We also found that finance worsens the labor income share, which leads to income inequality. In summary, this thesis confirmed that excessive finance exacerbates economic inequality. We also showed that macro-prudential policies lessen these adverse effects of finance.

@phdthesis{Yun:2022,

author = {Tae-Sub Yun},

advisor ={Il-Chul Moon},

title = {A Study on the Impact of Financial Quantitative Easing on Economic Inequality: Using Agent-Based Simulations},

school = {KAIST},

year = {2022}

}