Dear colleagues, The Department of Economics cordially invites you to the WU Economics Research Seminar on Wednesday, March 20th, 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 20th Time: 4.30 to 6 pm (CET) Location: building D4, ground floor, room D4.0.019<https://campus.wu.ac.at/?q=D4.0.019> With best regards, Harald Oberhofer --- 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<mailto: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<mailto:harald.oberhofer@wifo.ac.at> Webpage: http://www.wifo.ac.at/harald_oberhofer