The 2020 CARES Act directed large cash payments to households. We analyze households'
spending responses using data from a Fintech nonprofit, exploring heterogeneity by income …

We generalize the traditional, static Keynesian cross by deriving an intertemporal Keynesian
cross for the dynamic output response to government spending and taxes in microfounded …

In this essay, we discuss the emerging literature in macroeconomics that combines
heterogeneous agent models, nominal rigidities, and aggregate shocks. This literature …

THANK is a tractable heterogeneous-agent New-Keynesian model that captures analytically
core micro-heterogeneity channels of quantitative-HANK: cyclical inequality and risk; self …

Abstract We recast the Aiyagari–Bewley–Huggett model of income and wealth distribution in
continuous time. This workhorse model—as well as heterogeneous agent models more …

ABSTRACT We estimate a Heterogeneous-Agent New Keynesian model with sticky
household expectations that matches existing microeconomic evidence on marginal …

In response to the COVID-19 pandemic, large parts of the economy were locked down and,
as a result, households' income risk rose sharply. At the same time, policy makers put …

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 The New Keynesian (NK) cross is a graphical and analytical apparatus for
heterogeneous-agent (HANK) models expressing key aggregate demand objects—MPC …

Using an analytically tractable heterogeneous agent New Keynesian model, we show that
whether incomplete markets resolve New Keynesian “paradoxes” depends on the cyclicality …