We propose an organizing framework that determines asset prices by equating household sector asset demand derived from an economic model to the observed supply of assets provided by other sectors. We then use a specific model of household asset demand to decompose historical changes in asset...

This paper shows that a zero-sum redistribution of wealth within a country can have persistent aggregate effects. Motivated by the caseof an unanticipated inflation episode, we consider redistribution shocks that shift resources from old to young households. Aggregate effects arise because there...