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Hyperbolic Discounting and Positive Optimal Inflation

Graham, Liam - 2011

The Friedman rule states that steady-state welfare is maximized when there is deflation at the real rate of interest. Recent work by Khan et al (2003) uses a richer model but still finds deflation optimal. In an otherwise standard new Keynesian model we show that, if households have hyperbolic...

Persistent link: https://www.econbiz.de/10013125143

Monetary Persistence, Imperfect Competition, and Staggering Complementarities

Merkl, Christian; Snower, Dennis J. - 2021

This paper explores the influence of wage and price staggering on monetary persistence. We show that, for plausible parameter values, wage and price staggering are complementary in generating monetary persistence. We do so by proposing the new measure of quantitative inertia, after discussing...

Persistent link: https://www.econbiz.de/10013316832

Inflation and Welfare in Long-Run Equilibrium with Firm Dynamics

Janiak, Alexandre - 2009

We analyze the welfare cost of inflation in a model with cash-in-advance constraints and an endogenous distribution of establishments' productivities. Inflation distorts aggregate productivity through firm entry dynamics. The model is calibrated to the United States economy and the long-run...

Persistent link: https://www.econbiz.de/10013154485

Redistributive Effect and the Progressivity of Taxes and Benefits : Evidence for the UK, 1977-2018

Hérault, Nicolas; Jenkins, Stephen - 2022

We apply the Kakwani approach to decomposing redistributive effect into average rate, progressivity, and reranking components using yearly UK data covering 1977-2018. We examine cash and in-kind benefits, and direct and indirect taxes. In addition, we highlight an empirical implementation issue...

Persistent link: https://www.econbiz.de/10014030842

Distributional Effects of Monetary Policy in Emerging Market Economies

Prasad, Eswar S. - 2015

We develop a two-sector, heterogeneous-agent model with incomplete financial markets to study the distributional effects and aggregate welfare implications of alternative monetary policy rules in emerging market economies. Relative to inflation targeting, exchange rate management benefits...

Persistent link: https://www.econbiz.de/10013016221

Relative Income, Redistribution and Well-Being

FitzRoy, Felix R. - 2010

of redistribution: a universal basic income, and a categorical unemployment benefit. Well-being depends on own …

Persistent link: https://www.econbiz.de/10013136943

Social Spending Generosity and Income Inequality : A Dynamic Panel Approach

Niehues, Judith - 2010

This paper explores if more generous social spending polices in fact lead to less income inequality, or if redistributive outcomes are offset by behavioral disincentive effects. To account for the inherent endogeneity of social policies with regard to inequality levels, I apply the System GMM...

Persistent link: https://www.econbiz.de/10013138256

Redistribution Policy and Inequality Reduction in OECD Countries : What Has Changed in Two Decades?

Immervoll, Herwig - 2011

We use a range of data sources to assess if, and to what extent, government redistribution policies have slowed or … redistribution systems in place, greater inequality automatically leads to more redistribution, even if no policy action is taken. We … redistribution. Between the mid-1990s and the mid-2000s, the redistributive strength of tax-benefit systems then weakened in many …

Persistent link: https://www.econbiz.de/10013119289

Welfare and Distributional Impact of Soaring Prices in Europe

Sologon, Denisa M.; O'Donoghue, Cathal; Linden, Jules; … - 2022

This paper disentangles the distributional and welfare impact of price changes since the start of the cost of living crisis for a subset of European countries with different welfare regimes and price changes. It decomposes the impact of inflation and measures welfare changes using the...

Persistent link: https://www.econbiz.de/10014237195

Preferences for Redistribution and Pensions : What Can We Learn from Experiments?

Tausch, Franziska - 2010

Redistribution is an inevitable feature of collective pension schemes and economic experiments have revealed that most … people have a preference for redistribution that is not merely inspired by self-interest. Interestingly, little is known on … evidence on preferences for redistribution and suggest some links to redistribution through pensions. For that purpose we …

Persistent link: https://www.econbiz.de/10013139713