This paper investigates how the EU's Fit-for-55 climate package will affect aggregate output and distribute its costs across the income distribution. The question matters because energy is a necessity …
PublishedClassicJournal of Economic Dynamics and ControlPublished Apr 2018
This paper proposes computing the aggregate-uncertainty equilibrium of a heterogeneous-agent model by solving, entirely with standard nonlinear methods, the deterministic transition path back to …
In a calibrated stochastic growth model where a continuum of households face partially uninsurable employment risk and can self-insure only by holding aggregate capital, the macroeconomic aggregates …
PublishedJournal of Monetary EconomicsPublished Jun 2026
This paper asks whether a labor market with search-and-matching frictions and firms producing under decreasing returns to labor is better characterized by in-house hiring with intra-firm wage …
PublishedClassicReview of Economic StudiesOnline 23 Mar 2019Published Jan 2020
This paper shows that the standard New Keynesian monetary transmission mechanism -- in which a rate cut raises output and employment -- breaks down in the simplest possible heterogeneous-agent version …