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Institute of Economics

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  7. New BERG Working Paper No. 195 of Leonhard Ipsen and Jan Schulz published

New BERG Working Paper No. 195 of Leonhard Ipsen and Jan Schulz published

In the BERG Working Paper Series Leonhard Ipsen and Jan Schulz have published a new paper (No 195) entitled "The (Dis-)Equalizing Effects of Production Networks".

A complete overview of all BERG Working Papers published so far can be found hier.

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Abstract:

We suggest and empirically substantiate that the global production network constitutes an important variable for inflation inequality, as it modulates the impact of cost-push shocks on households. For most price shocks, the production network reduces inflation inequality, however, at the expense of lower-income households. Introducing a synthetic Consumer Price Index indicates lower-income households to be at the losing end of the overall effect of supply-side price shocks.