TY - JOUR
T1 - Aggregate implications of wealth redistribution
T2 - The case of inflation
AU - Doepke, Matthias
AU - Schneider, Martin
PY - 2006
Y1 - 2006
N2 - 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.
AB - 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.
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U2 - 10.1162/jeea.2006.4.2-3.493
DO - 10.1162/jeea.2006.4.2-3.493
M3 - Article
AN - SCOPUS:33846554222
SN - 1542-4766
VL - 4
SP - 493
EP - 502
JO - Journal of the European Economic Association
JF - Journal of the European Economic Association
IS - 2-3
ER -