Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/76296
Authors: 
Heer, Burkhard
Süssmuth, Bernd
Year of Publication: 
2003
Series/Report no.: 
CESifo Working Paper 835
Abstract: 
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).
Subjects: 
inflation
welfare costs
wealth distribution
stock market participation
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.