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Timo Boppart · Per Krusell · Kurt Mitman

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 …

Emmanuel Dhyne · Ayumu Ken Kikkawa · Toshiaki Komatsu · Magne Mogstad · Felix Tintelnot

The paper asks three related questions in the context of Belgium, a small open economy: (1) What do firms' responses to demand shocks reveal about their cost structures? (2) What are the worker and …

Benjamin Moll

This essay argues that rational expectations about equilibrium prices -- which in heterogeneous-agent models means forecasting prices by forecasting the entire cross-sectional distribution, via an …