Aggregate Implications of Wealth Redistribution: The Case of Inflation

Matthias Doepke () and Martin Schneider ()

No 5552, CEPR Discussion Papers from C.E.P.R. Discussion Papers

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 labour force status.

Keywords: aggregate effects; inflation; redistribution (search for similar items in EconPapers)
JEL-codes: D31 D58 E31 E50 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cba, nep-dge and nep-mac
Date: 2006-03

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Working Paper: Aggregate Implications of Wealth Redistribution: The Case of Inflation* (2006)
Journal Article: Aggregate Implications of Wealth Redistribution: The Case of Inflation (2006)
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