Intergenerational Redistribution in the Great Recession

• 成果类型: Article
• 署名作者: Glover, Andrew; Heathcote, Jonathan; Krueger, Dirk; Rios-Rull, Jose-Victor
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - Kansas City; Federal Reserve System - USA; Federal Reserve Bank - Minneapolis; Center for Economic & Policy Research (CEPR); University of Pennsylvania; National Bureau of Economic Research; University of London; University College London
• 刊物名称: JOURNAL OF POLITICAL ECONOMY
• ISSN/ISSBN: 0022-3808
• DOI: 10.1086/708820
• 发表日期: 2020
• 页码: 3730-3778
• 关键词: intertemporal substitution; temporal behavior; asset returns; risk-aversion; long-run; consumption; equilibrium; generations; DYNAMICS; premium

摘要

The Great Recession saw sharp drops in labor earnings and even larger declines in asset prices. How were the welfare losses from these declines distributed across different age groups? To address this question we construct an overlapping-generations general equilibrium model in which households face large aggregate shocks. A calibrated version of the model replicates observed dynamics for asset prices. Younger households experience larger earnings losses in a model Great Recession, but benefit from being able to buy assets at temporarily depressed prices. As a result, the model predicts that the young experience smaller welfare losses than older cohorts.