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 introduce a unified deep learning method that solves dynamic economic models by
casting them into nonlinear regression equations. We derive such equations for three …

We postulate a continuous‐time heterogeneous agent model with a financial sector and
households to study the nonlinear linkages between aggregate and financial variables. In …

Macroeconomics at the intermediate and graduate levels rests on three workhorses: the
Solow-Swan model, the overlapping generations (OLG) model, and the Ramsey model. The …

Although almost nonexistent 15 years ago, there are now numerous papers that analyze
models with both aggregate uncertainty and a large number—typically a continuum—of …

We develop numerically stable and accurate stochastic simulation approaches for solving
dynamic economic models. First, instead of standard least‐squares approximation methods …

An accurate global projection algorithm is critical for quantifying the basic moments of the
Diamond–Mortensen–Pissarides model. Log linearization understates the mean and …

Over the past thirty years, the share of young firms in the US has declined while the share of
profits in GDP has increased. This paper explores the role of consumer inertia—persistence …

This paper studies how household inequality shapes the effects of the zero lower bound
(ZLB) on nominal interest rates on aggregate dynamics. To do so, we consider a …

This paper compares numerical solutions to the model of Krusell and Smith [1998. Income
and wealth heterogeneity in the macroeconomy. Journal of Political Economy 106, 867–896] …