Christian Scharrer, University of Augsburg Seminar - September 20, 2017

Posted on 2017-09-06 in News, Events, Upcoming Seminars
Sep 20, 2017



September 20, 2017

Christian Scharrer, University of Ausgburg, will present a seminar at 4:00 PM in Arts 807.

Seminar Title: "The Burden of Unanticipated Government Spending"

We study the impact of a government spending shock on the distribution of income and wealth between cohorts in a dynamic stochastic overlapping generations model with two types of households, Ricardian households and rule-of-thumb consumers. We demonstrate that an unexpected increase in government spending increases income inequality and decreases wealth inequality. In contrast to the conventional wisdom that the financing of additional expenditures by debt rather than taxes especially burdens young generations, we find that a debt-financed increase in government spending also harms Ricardian households during retirement, while workers close to retirement benefit. The crucial element in our analysis is a wealth effect that results from the decline in the price of capital due to higher government debt.


This seminar is part of the Department of Economics Seminar Series. Everyone is welcome.

Back to News Listing

Related Articles

Economics student recognized at Washington conference

Posted on 2020-02-26

Dolapo Fadare is the inaugural recipient of the Award for Excellence in Undergraduate Studies from The Sadie Collective


USask alumna named Consul General of Canada

Posted on 2019-11-25

Rachel McCormick (BA’97), who is now based in Dallas, Texas, previously served as head of the Energy and Environment Section at the Canadian Embassy in Washington, D.C., from 2014 – 2019


J.M. Boving Lecture | December 5 2019 | The Two Faces of Populism: Politics or Economics?

Posted on 2019-11-20

The Two Faces of Populism: Politics or Economics? Presented by Professor Barry Eichengreen, University of California Berkeley, at 5:00pm Arts 241.


Lanny Zrill, HEC Montreal - October 28, 2019

Posted on 2019-10-21

Lanny Zrill, HEC Montreal will present a seminar at 4:00pm in Arts 807