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 …

This paper reviews recent advances in the theory of optimal policy in a dynamic Mirrlees
setting, and contrasts this approach to the one based on the representative-agent Ramsey …

Uncertainty is an amorphous concept. It reflects uncertainty in the minds of consumers,
managers, and policymakers about possible futures. It is also a broad concept, including …

This paper evaluates the role of redistribution in the transmission mechanism of monetary
policy to consumption. Three channels affect aggregate spending when winners and losers …

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 …

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

ABSTRACT I study aggregate consumption dynamics under incomplete markets, focusing
on the relationship between consumption and the path for interest rates. I first provide a …

Micro-and macro-level evidence indicates that fluctuations in idiosyncratic uncertainty have
a large effect on investment; the impact of uncertainty on investment occurs primarily through …

We study business cycle variation in individual earnings risk using a confidential and very
large data set from the US Social Security Administration. Contrary to past research, we find …