**HETEROGENEOUS AGENTS in Macroeconomics**

**1. Introduction and Stylized Facts: Inequality in Macroeconomics**

- 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.