HETEROGENEOUS AGENTS in Macroeconomics
1. Introduction and Stylized Facts: Inequality in Macroeconomics
2. The Neoclassical Growth Model: A Review
3. Partial Equilibrium with Incomplete Markets: Precautionary Savings
4. Idiosincratic Shocks and Incomplete Markets: Stationary General Equilibrium
5. Wealth Distribution.
6. Continuous Time.
7. Transitions between Steady-States: Policy Evaluation
8. Aggregate Unceratinty and Idiosincratic Shocks: Business Cycles
9. Political Equilibrium
10. Firm Heterogeneity and Models of Entrepreneurship
11. Financial Frictions
12. Labor Frictions: Search Models with Precautionary Savings
13. Nominal Rigidities: Monetary Policy
- Guvenen, F. (2011): "Macroeconomics with Heterogeneity: A Practical Guide,'' Economic Quarterly, 97(3):255–326.
- Heathcote, J., K. Storesletten, and G. Violante (2009): "Quantitative Macroeconomics with Heterogeneous Households,'' Annual Review of Economics, 1:319–54.
- Quadrini. V. and J. Ríos-Rull (2015): "Inequality in Macroeconomics,'' Handbook of Income Distribution, Ch.14 Volumen 2B.
2. The Neoclassical Growth Model: A Review
- Krueger, D. (2011), Macroeconomic Theory, mimeo. Chaps. 3-7
- Ljunqvist, L. and T. Sargent (2001), Recursive Macroeconomic Theory, The MIT Press, Chap. 7 (pp. 191-197), 8, 12 y 13
3. Partial Equilibrium with Incomplete Markets: Precautionary Savings
- Krueger, D. (2010), Consumption and Saving: Theory and Evidence, mimeo. Chaps. 3 y 4
- Ljunqvist, L. and T. Sargent (2001), Recursive Macroeconomic Theory, The MIT Press, Chap. 16
4. Idiosincratic Shocks and Incomplete Markets: Stationary General Equilibrium
- Krueger, D. (2010), Consumption and Saving: Theory and Evidence, mimeo. Sec. 5.1
- Ljunqvist, L. and T. Sargent (2001), Recursive Macroeconomic Theory, The MIT Press, Chaps. 17
- Aiyagari, R. (1994): "Uninsured Risk and Aggregate Savings,'' Quarterly Journal of Economics, 109:659-684.
- Hugget, M (1993): "The Risk-free Rate in Heterogeneous-agent Incomplete-insurance Economies,'' Journal of Economic Dynamics and Control, 17:953-969.
- Davila, J., J. Hong, P. Krusell, and V. Ríos-Rull (2012): "Constrained efficiency in the neoclassical growth model with uninsurable idiosyncratic shocks,'' Econometrica 80(6):2431-67.
5. Wealth Distribution.
- Hugget, M (1996): "Wealth distribution in life-cycle economies,'' Journal of Monetary Economics, 38:469-494.
- Castañeda A, Díaz-Giménez J, and Ríos-Rull J (2003): "Accounting for the US Earnings and Wealth Inequality,'' Journal of Political Economy 111(4):818-857.
- De Nardi, M. (2015): "Quantitative Models of Wealth Inequality: A Survey,'' NBER Working Paper 21106.
6. Continuous Time.
- Achdou, Y. J. Han, J. Lasry, P. Lions and B. Moll (2018): "Income and Wealth Distribution in Macroeconomics: A Continuous-Time Approach."
7. Transitions between Steady-States: Policy Evaluation
- Krueger, D. (2010), Consumption and Saving: Theory and Evidence, mimeo. Sec. 5.3
- Huggett, M. (1997): "The one-sector growth model with idiosyncratic shocks: Steady states and dynamics,'' Journal of Monetary Economics 39(3):385-403.
- Kaymak and Poschke (2016): "The evolution of wealth inequality over half a century: The role of taxes, transfers and technology,'' Journal of Monetary Economics 77(3):1-25.
8. Aggregate Unceratinty and Idiosincratic Shocks: Business Cycles
- Krueger, D. (2010), Consumption and Saving: Theory and Evidence, mimeo. Sec. 5.4
- Krusell, P. and A. Smith (1998): "Income and Wealth Heterogeneity in the Macroeconomy,'' Journal of Political Economy 109(5):867-896.
- Krueger, D., K. Mitman, and F. Perri (2016): "Macroeconomics and Household Heterogeneity,'' Handbook of Macroeconomics 2:843-921.
- Aguirre (2017): "Welfare Effects of Fiscal Procyclicality: Public Insurance with Heterogeneous Agents," mimeo.
9. Political Equilibrium
- Krusell, P. and V. Rios-Rull (1999): "On the size of US government: political economy in the neoclassical growth model,'' American Economic Review 89(5):1156-81.
- Corbae, D., P. D’Erasmo, and B. Kuruscu (2009): "Politico-economic consequences of rising wage inequality,'' Journal of Monetary Economics, 56(1):43-61.
- Bachmann, R. and J. H. Bai (2013): "Politico-economic inequality and the comovement of government purchases,'' Review of Economic Dynamics 16(4), 565-580.
10. Firm Heterogeneity and Models of Entrepreneurship
- Clementi, G. and D. Palazzo (2016): "Entry, Exit, Firm Dynamics and Aggregate Fluctuations,'' Forthcoming in American Economic Journal: Macroeconomics.
- Quadrini, V. (1997): "Entrepreneurship, Saving and Social Mobility,'' Review of Economic Dynamics 3:1-40.
11. Financial Frictions
- Krueger, D. (2011), Macroeconomic Theory, mimeo, Chap. 6
- Krueger, D. and F. Perri (2006): "Does Income Inequality Lead to Consumption Inequality: Evidence and Theory,'' Review of Economic Studies, 73, 163-193.
- Zhang, H. (1997): "Endogenous borrowing constraints with incomplete markets,'' The Journal of Finance, 52(5):2187-2209.
- Aguirre, A. (2017): "Contracting Institutions and Economic Growth,'' Review of Economic Dynamics 24:192-217.
- Livshits, I., J. MacGee, and M. Tertilt (2007): "Consumer bankruptcy: A fresh start,'' The American Economic Review 97(1):402-418.
12. Labor Frictions: Search Models with Precautionary Savings
- Krusell, P., T. Mukoyama and A. Sahin (2010): "Labour-market matching with precautionary savings and aggregate fluctuations,'' The Review of Economic Studies 77(4), 1477-1507.
- Nakajima, M. (2012): "Business Cycles In The Equilibrium Model Of Labor Market Search And Self-Insurance.'' International Economic Review, 53(2):399-432.
- Nakajima, M. (2012): "A quantitative analysis of unemployment benefit extensions,'' Journal of Monetary Economics 59(7):686-702.
13. Nominal Rigidities: Monetary Policy
- Gornemann, N., K. Kuester and M. Nakajima (2016): "Doves for the rich, hawks for the poor? Distributional consequences of monetary policy.'' mimeo.