Macroeconomics is evolving from the study of aggregate dynamics to the study of the
dynamics of the entire equilibrium distribution of allocations across individual economic …

The goal of this chapter is to study how, and by how much, household income, wealth, and
preference heterogeneity amplify and propagate a macroeconomic shock. We focus on the …

We study the effects of a credit crunch on consumer spending in a heterogeneous-agent
incomplete-market model. After an unexpected permanent tightening in consumers' …

Recently developed HANK models, which combine Heterogeneous Agents and New
Keynesian frictions, have had a considerable impact on macroeconomics. However, due to …

We propose a new method for computing equilibria in heterogeneous-agent models with
aggregate uncertainty. The idea relies on an assumption that linearization offers a good …

Abstract We build a New Keynesian business-cycle model with rich household
heterogeneity. A central feature is that matching frictions render labor-market risk …

We provide a set of comparable estimates for the rates of inflow to and outflow from
unemployment using publicly available data for fourteen OECD economies. Using a novel …

We propose a new measure of frictional wage dispersion: the meanmin wage ratio. For a
large class of search models, we show that this measure is independent of the wage-offer …

By how much does an extension of unemployment benefits affect macroeconomic outcomes
such as unemployment? Answering this question is challenging because US law extends …

Nonemployment is often posited as a worker's outside option in wage-setting models such
as bargaining and wage posting. The value of nonemployment is therefore a key …