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                                                                                    Briefing
                                                                                
                                            Does Redistribution Increase Output?
                                        
                                        
                                        
                                        
                                                                                    
                                                                                                    According to conventional wisdom, wealth redistribution boosts output by increasing aggregate consumption. However, while redistributive policies can have a short-run stimulative effect on consumption, their effect on output depends, potentially quite importantly, on the nature of household labor supply.