The Burden of Unanticipated Inflation: Analysis of an Overlapping-Generations Model with Progressive Income Taxation and Staggered Prices
- Inflation is often associated with a loss for the poor in the medium and long term. We study the short-run redistributive effects of unanticipated inflation in a dynamic optimizing sticky price model of the business cycle. Agents are heterogeneous with regard to their age and their productivity. We emphasize three channels of the effect of inflation on income distribution: (1) factor prices, (2) “bracket creep,” and (3) sticky pensions. Unanticipated inflation that is caused by monetary expansion is found to reduce income inequality. In particular, an increase of the money growth rate by one standard deviation results in a 1% drop of the Gini coefficient of disposable income if extra tax revenues are transferred lump-sum to the households.
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| Author: | Alfred MaußnerGND, Burkhard HeerGND |
|---|---|
| URN: | urn:nbn:de:bvb:384-opus4-377889 |
| Frontdoor URL | https://opus.bibliothek.uni-augsburg.de/opus4/37788 |
| ISSN: | 1365-1005OPAC |
| Parent Title (English): | Macroeconomic Dynamics |
| Publisher: | Cambridge Univ. Press |
| Place of publication: | Cambridge |
| Type: | Article |
| Language: | English |
| Year of first Publication: | 2012 |
| Publishing Institution: | Universität Augsburg |
| Release Date: | 2018/01/16 |
| GND-Keyword: | Inflation; Verteilungstheorie; Einkommensteuer |
| Volume: | 16 |
| Issue: | 2 |
| First Page: | 278 |
| Last Page: | 308 |
| Note: | Dieser Beitrag ist mit Zustimmung des Rechteinhabers aufgrund einer (DFG-geförderten) Allianz- bzw. Nationallizenz frei zugänglich. Online bereits 2011 veröffentlicht. |
| DOI: | https://doi.org/10.1017/S1365100510000490 |
| Institutes: | Wirtschaftswissenschaftliche Fakultät |
| Wirtschaftswissenschaftliche Fakultät / Institut für Volkswirtschaftslehre | |
| Wirtschaftswissenschaftliche Fakultät / Institut für Volkswirtschaftslehre / Lehrstuhl für Finanzwissenschaft | |
| Wirtschaftswissenschaftliche Fakultät / Institut für Volkswirtschaftslehre / Lehrstuhl für Empirische Makroökonomik (Maußner) | |
| Dewey Decimal Classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
| Licence (German): |  Deutsches Urheberrecht |
