Aggregate Implications of Wealth Redistribution: The Case of Inflation

UCLA Department of Economics Working Paper No. 846

10 Pages Posted: 17 Feb 2006

See all articles by Matthias Doepke

Matthias Doepke

Northwestern University - Department of Economics; Centre for Economic Policy Research (CEPR); National Bureau of Economic Research (NBER); IZA Institute of Labor Economics

Martin Schneider

Independent

Multiple version iconThere are 2 versions of this paper

Date Written: Februrary 2006

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.

Keywords: Redistribution, Life-cycle effects, retirement

JEL Classification: D31, D58, E31, E50

Suggested Citation

Doepke, Matthias and Schneider, Martin, Aggregate Implications of Wealth Redistribution: The Case of Inflation (Februrary 2006). UCLA Department of Economics Working Paper No. 846. Available at SSRN: https://ssrn.com/abstract=883117 or http://dx.doi.org/10.2139/ssrn.883117

Matthias Doepke (Contact Author)

Northwestern University - Department of Economics ( email )

2003 Sheridan Road
Evanston, IL 60208
United States

Centre for Economic Policy Research (CEPR)

London
United Kingdom

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Martin Schneider

Independent ( email )

No Address Available
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
46
Abstract Views
591
PlumX Metrics