Aggregate implications of wealth redistribution: The case of inflation

Matthias Doepke*, Martin Schneider

*Corresponding author for this work

Research output: Contribution to journalArticle

14 Scopus citations

Abstract

This paper shows that a zero-sum redistribution of wealth within a country can have persistent aggregate effects. Motivated by the case of 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.

Original languageEnglish (US)
Pages (from-to)493-502
Number of pages10
JournalJournal of the European Economic Association
Volume4
Issue number2-3
DOIs
StatePublished - 2006

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)

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