Dear colleagues,

The Department of Economics cordially invites you to the WU Economics Research Seminar on Wednesday, March 20^th, with

Christian Bayer

(University of Bonn)

on

"Das Sein bestimmt das Bewußtsein: Attitudes towards fiscal policy according to HANK²"

Abstract: Income, wealth, and consumption inequality differ considerably across countries even in relatively homogeneous currency areas such as the Euro-zone. Some countries rely more on market-based self insurance, others provide minimum income benefits. This has political economy repercussions because minimum income benefits render the majority of households implicitly more patient. We show that in a two-country incomplete markets model of a currency union, minimum income benefits create support for a balanced budget reaction to a contraction and to a repayment of debt in an expansion. Households are more willing to trade off short-term losses for long-term gains when the income safety-net is strong.

Date: Wednesday, March 20^th

Time: 4.30 to 6 pm (CET)

Location: building D4, ground floor, room D4.0.019

With best regards,

Harald Oberhofer

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Univ.-Prof. Dr. Harald Oberhofer

Department of Economics 

WU Vienna University of Economics and Business

Phone: +43/1/31336-4984

Email: harald.oberhofer@wu.ac.at

Webpage: https://www.wu.ac.at/ie/mitarbeiter/harald-oberhofer/

Austrian Institute of Economic Research (WIFO)

Phone: +43/1/7982601-468

Email: harald.oberhofer@wifo.ac.at

Webpage: http://www.wifo.ac.at/harald_oberhofer