We study individual male earnings dynamics over the life cycle using panel data on millions
of US workers. Using nonparametric methods, we first show that the distribution of earnings …

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 develop an efficient and easy to use computational method for solving a wide class of
general equilibrium heterogeneous agent models with aggregate shocks together with an …

We explore the transmission mechanism of income inequality to output. In the short run,
higher inequality reduces output because marginal propensities to consume are negatively …

This paper shows that the unequal incidence of recessions in the labor market amplifies
aggregate shocks. Using administrative data from the United States, I document a positive …

We show how a heterogeneous agent New Keynesian (HANK) model with incomplete
markets and portfolio choice can be estimated in state space using a Bayesian approach. To …

Earnings dynamics are much richer than typically assumed in macro models with
heterogeneous agents. This holds for individual-pre-tax and household-post-tax earnings …

Should the generosity of unemployment benefits and the progressivity of income taxes
depend on the presence of business cycles? This paper proposes a tractable model where …

Using firm-level panel data from the US Census Bureau and almost fifty other countries, we
show that the skewness of the growth rates of employment, sales, and productivity is …

Administrative earnings data reveal that households are exposed to large, countercyclical
idiosyncratic tail risks in labor earnings. I illustrate how these risks affect asset prices within …