Arbeitspapier
Inflation and Wealth Distribution
The effect of a permanent change of inflation on the distribution of wealth is analyzed in a general equilibrium OLG model that is calibrated with regard to the characteristics of the US economy. Poor agents accumulate savings predominantly in the form of money, while rich agents participate in the stock market and accumulate equity. Surprisingly, an increase of inflation results in a lower stock market participation rate; in addition, the distribution of wealth becomes more unequal, even though the quantitative effect is economically negligible. Furthermore, we show that the welfare costs of anticipated inflation are considerably lower than in Imrohoroglu (1992).
- Language
-
Englisch
- Bibliographic citation
-
Series: CESifo Working Paper ; No. 835
- Classification
-
Wirtschaft
- Subject
-
inflation
welfare costs
wealth distribution
stock market participation
- Event
-
Geistige Schöpfung
- (who)
-
Heer, Burkhard
Süssmuth, Bernd
- Event
-
Veröffentlichung
- (who)
-
Center for Economic Studies and ifo Institute (CESifo)
- (where)
-
Munich
- (when)
-
2003
- Handle
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Heer, Burkhard
- Süssmuth, Bernd
- Center for Economic Studies and ifo Institute (CESifo)
Time of origin
- 2003
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