Aggregate Implications of Wealth Redistribution: The Case of Inflation
AbstractThis paper shows that a zero-sum redistribution of wealth within a country can have persistent aggregate effects. Motivated by the caseof an unanticipated inflation episode, we consider redistribution shocks that shift resources from old to young households. Aggregate effects arise because there are asymmetries in the reaction of winners and losers to changes in wealth. We focus on two sources of asymmetries: Differences in the average age of winners and losers, and differences in their labor force status. (JEL: D31, D58, E31, E50) (c) 2006 by the European Economic Association.
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Bibliographic InfoPaper provided by UCLA Department of Economics in its series UCLA Economics Working Papers with number 846.
Date of creation: 01 Feb 2006
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Web page: http://www.econ.ucla.edu/
Other versions of this item:
- Matthias Doepke & Martin Schneider, 2006. "Aggregate Implications of Wealth Redistribution: The Case of Inflation," Journal of the European Economic Association, MIT Press, vol. 4(2-3), pages 493-502, 04-05.
- Doepke, Matthias & Schneider, Martin, 2006. "Aggregate Implications of Wealth Redistribution: The Case of Inflation," CEPR Discussion Papers 5552, C.E.P.R. Discussion Papers.
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
- E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
- E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-03-05 (All new papers)
- NEP-CBA-2006-03-05 (Central Banking)
- NEP-DGE-2006-03-05 (Dynamic General Equilibrium)
- NEP-MAC-2006-03-05 (Macroeconomics)
- NEP-MON-2006-03-05 (Monetary Economics)
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- Nils Gornemann & Keith Kuester & Makoto Nakajima, 2012.
"Monetary policy with heterogeneous agents,"
12-21, Federal Reserve Bank of Philadelphia.
- Yann Algan & Edouard Challe & Xavier Ragot, 2008.
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PSE Working Papers
- Yann Algan & Edouard Challe & Xavier Ragot, 2011. "Incomplete markets and the output–inflation tradeoff," Economic Theory, Springer, vol. 46(1), pages 55-84, January.
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- Kryvtsov, Oleksiy & Shukayev, Malik & Ueberfeldt, Alexander, 2011. "Optimal monetary policy under incomplete markets and aggregate uncertainty: A long-run perspective," Journal of Economic Dynamics and Control, Elsevier, vol. 35(7), pages 1045-1060, July.
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