The paper studies Germany's temporary 3 percentage-point VAT cut from July 1 to December 31, 2020 (standard rate 19%→16%, reduced rate 7%→5%), combining two causal identification strategies with …
PublishedJournal of Monetary EconomicsPublished Mar 2026
This paper introduces the Distributional Endogenous Gridpoint Method (DEGM), a novel numerical technique for solving the distributional dynamics that arise in heterogeneous agent macroeconomic models. …
PublishedAmerican Economic ReviewOnline 1 Feb 2026Published Feb 2026
How do consumer credit spreads — the gap between household borrowing rates and deposit rates — affect aggregate business cycle dynamics and the distribution of consumption across the wealth …
PublishedClassicQuantitative EconomicsOnline 1 Nov 2020Published Nov 2020
A solution method for discrete-time heterogeneous-agent models with aggregate risk that extends Reiter's perturbation approach by compressing the state space after the no-aggregate-risk stationary …
In a two-asset HANK model where households hold liquid bonds and illiquid capital, monetary policy transmits mainly through investment rather than consumption, but a tightening redistributes income …
Online FirstJournal of Money, Credit and BankingOnline 18 Sep 2026
Asking whether unconventional monetary policy works differently from an interest-rate cut has been hard to answer because the two kinds of policy have been measured with different tools, so any …