DeepHAM represents the distribution of agents through a small set of algorithmically-learned "generalized moments" and uses deep neural networks trained on directly simulated paths to globally solve …
PublishedQuarterly Journal of EconomicsOnline 27 Nov 2024Published Jan 2025
The paper tests whether financial concerns distract workers sufficiently to meaningfully reduce their productivity, and whether receiving cash — by alleviating those concerns — can raise output even …
By treating a nonlinear model's own parameters as extra "pseudo state variables" that a neural network learns to solve for across the entire parameter space at once, and by training a second network …
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 …
Auclert, Rognlie, and Straub review a decade of Heterogeneous-Agent New Keynesian (HANK) research through a single canonical model, showing that monetary and balanced-budget fiscal policy have …
PublishedClassicReview of Economic StudiesOnline 6 Apr 2021Published Jan 2022
This paper recasts the Aiyagari-Bewley-Huggett incomplete-markets model in continuous time, showing it reduces to a coupled system of a Hamilton-Jacobi-Bellman equation and a Kolmogorov Forward …
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 …
Online FirstReview of Economic StudiesOnline 3 Jun 2026
The paper establishes a causal link from rising top income shares to reduced net job creation at small firms, working through a bank funding channel rooted in non-homothetic household portfolio …
PublishedJournal of Monetary EconomicsOnline 1 Jan 2026Published Jan 2026
This paper studies the cross-sectional dimension of Fisher's (1933) debt-deflation mechanism as it operates during Sudden Stop crises — episodes characterized by large, abrupt reversals in the current …
This paper builds a two-asset Heterogeneous Agent New Keynesian (HANK) model matching the empirical joint distribution of income, liquid, and illiquid wealth, and finds that the indirect effect of an …
This paper shows that monetary policy affects aggregate consumption not only through the standard income and substitution channels but also through three redistribution channels -- earnings …
PublishedAmerican Economic ReviewOnline 1 Jan 2026Published Jan 2026
This paper asks whether and how optimal income taxation should change when firms have market power. The question is motivated by the documented rise in economy-wide markups since 1980, which has …
PublishedClassicPhilosophical Transactions of the Royal Society A: Mathematical, Physical and Engineering SciencesOnline 13 Nov 2014Published Nov 2014
Written explicitly to get mathematicians interested in macroeconomics, this review collects the systems of coupled nonlinear partial differential equations that arise once a macro model tracks a whole …
Online FirstReview of Economic StudiesOnline 12 Mar 2026
Should monetary policy deviate from price stability to address redistributive concerns in an economy with heterogeneous agents? The paper jointly solves for optimal monetary and fiscal policy under …
This paper builds a Heterogeneous Agent New Keynesian (HANK) model with incomplete markets, capital, and nominal price/wage rigidities -- with a government budget constraint specified in nominal terms …
This review systematically compares heterogeneous-agent incomplete-markets models to see which model features and calibration strategies can deliver both a realistically large average marginal …
PublishedClassicQuarterly Journal of EconomicsPublished Aug 1994
This paper builds the standard growth model modified so that a continuum of infinitely-lived agents face uninsured idiosyncratic labor-income risk and a borrowing constraint, and shows that the …
Most heterogeneous-agent New Keynesian (HANK) models take household portfolios as exogenously fixed. This paper develops a sequence-space method for solving instead for endogenous, risk-hedging …