Aggregate Implications of Wealth Redistribution: The Case of Inflation
This 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.
(This abstract was borrowed from another version of this item.)
When requesting a correction, please mention this item's handle: RePEc:cla:uclawp:846. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (David K. Levine)
If references are entirely missing, you can add them using this form.