The purpose of this essay is to point out two errors which exist in Patinkin's Money, Interest and Prices. The aim is to show that the rehabilitation of the neoclassical theory of money and interest is not convincing. I shall try to show that Patinkin's refined version of the quantity theory...

This paper studies the transmission of monetary policy to household consumption through wealth effects in a small open economy. As a natural experiment, we exploit the 2015 Swiss franc shock, triggered by the Swiss National Bank's unexpected removal of the euro exchange rate floor. Using...

What happens across generations to random wealth shocks? Do they endure and even magnify, or do they dissipate? By implication, how much of modern wealth is attributable to events before 1900? This paper uses random shocks to family size in England before 1880, that created wealth shocks for the...

We investigate the wealth effect of asset securitization in real estate and infrastructure sectors on issuing firms, based on data from 859 listed companies in China, the world's largest developing country. The data come from a manual match to securitization issuance records, spanning from 2014...

This paper investigates the relationship between public debt and the effectiveness of fiscal policy, presenting evidence of an inverse relationship between government debt and fiscal multipliers. To explain the results, I develop and calibrate a HANK model tailored to the U.S. economy. The model...

We provide novel evidence about the incentive and welfare effects of an increase in the generosity of disability benefits. Importantly, a unique policy variation in Germany allows us to isolate the income effect of a change in benefit generosity. We leverage this quasi-experimental policy...

We provide novel evidence about the incentive and welfare effects of an increase in the generosity of disability benefits. Importantly, a unique policy variation in Germany allows us to isolate the income effect of a change in benefit generosity. We leverage this quasi-experimental policy...

We provide novel evidence about the incentive and welfare effects of an increase in the generosity of disability benefits. Importantly, a unique policy variation in Germany allows us to isolate the income effect of a change in benefit generosity. We leverage this quasi-experimental policy...

We study the redistributive effects of surprise inflation combining administrative bank data with an information provision experiment during an episode of historic inflation. On average, households are well-informed about prevailing inflation and are concerned about its impact on their wealth;...

This study aims to explore the extent to which changes in wealth contributes to inflation utilizing a highly flexible non-Gaussian SVAR framework which minimizes the risk of distributional misspecification. We employ narrative sign restrictions to label the asset price shock and leverage the...

We study the role of asset revaluation in the monetary transmission mechanism. We build an analytical heterogeneous-agents model with two main ingredients: i) rare disasters; ii) heterogeneous beliefs. The model captures time-varying risk premia and precautionary savings in a setting that nests...

We use Norwegian tax data and a life-cycle model with housing to study how wealth transmits across generations through the housing market. After controlling for a rich set of attributes, households with richer parents are nearly 15% more likely to be homeowners at age 30. Moreover, when...

Die Coronapandemie, die Energiepreisekrise und die damit einhergehenden hohen Inflationsraten haben ihre Spuren hinterlassen. Die bis zu Beginn des Jahres 2023 sinkenden Reallöhne haben einen Teil der Reallohnzuwächse der Vorjahre aufgezehrt: Im Jahresdurchschnitt 2023 lag der Reallohnindex...

We study households' response to the redistributive effects of inflation combining bank data with an information experiment during historic inflation. Households are generally well-informed about inflation and concerned about its wealth impact; yet, while knowledge about inflation eroding...

This study explores the investment behavior of underperforming chief executive officers (CEOs) on merger frequency and the effect on acquirers’ shareholder wealth of merger bids in U.S. industrial firms. We find that underperforming CEOs are more likely to make acquisitions, especially...

Housing is the main asset through which households accumulate wealth and its taxation is highly debated. We provide the first empirical estimates of the long-run effects of shocks to property taxation on lifetime wealth accumulation and investment. To do so, we examine a unique 18th-century tax...

This study explores the behavior of underperforming chief executive officers (CEOs) on merger frequency and the effect on acquirers’ shareholder wealth of merger bids in U.S. industrial firms from 1994 to 2018. We find that underperforming CEOs are more likely to make acquisitions, especially...

Households across Europe are struggling with a double crisis-the worst inflation shock since the World War II and a sudden correction in house prices. There is a rich literature on how housing price cycles affect consumer spending, finding mixed results with a wide range of consumption responses...

We study the redistributive effects of inflation combining administrative bank data with an information provision experiment during an episode of historic inflation. On average, households are well-informed about prevailing inflation and are concerned about its impact on their wealth; yet, while...

Evidence of the asymmetric wealth effect has important implications for investors and continues to merit research attention, not least because much of the evidence based on linear models has been refuted. Indeed, stock and house prices are influenced by economic activity and react non-linearly...

We study the redistributive effects of inflation combining administrative bank data with an information provision experiment during an episode of historic inflation. On average, households are well-informed about prevailing inflation and are concerned about its impact on their wealth; yet, while...

Purpose This study aims to examine the effects of prior small-scale changes to wealth on subsequent risky choices. Design/methodology/approach The paper opted for a laboratory experiment in which subjects perform two sequences of risky tasks. In between these two sets, the author transfers money...

The present paper analyses the contribution of different population sub-groups classified by the wealth index quantiles groups to the change in the risk of death in the first five years of life in India during 2005-06 through 2019-21. The analysis reveals that the poorest and the poorer...

This paper critically evaluates debates over the causes of U.S. inflation. We first show that claims that the Biden stimulus was the major cause of inflation are mistaken: the key data series – stimulus spending and inflation – move dramatically out of phase. While the first ebbs quickly,...