What model features and calibration strategies yield a large average marginal propensity to
consume (MPC) in heterogeneous agent models? Through a systematic investigation of …

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 …

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 past forty years have seen a rapid rise in top income inequality in the United States.
While there is a large number of existing theories of the Pareto tail of the long‐run income …

We examine the link between wage and consumption inequality using a life-cycle model
incorporating consumption and family labor supply decisions. We derive analytical …

This paper documents how life cycle wage growth varies across countries. We harmonize
repeated cross-sectional surveys from a set of countries of all income levels and then …

This paper examines the link between income and consumption inequality. We create panel
data on consumption for the Panel Study of Income Dynamics using an imputation …

We revisit to what extent the increase in income inequality since 1980 was mirrored by
consumption inequality. We do so by constructing an alternative measure of consumption …

Using data from the Consumer Expenditure Survey, we first document that the recent
increase in income inequality in the US has not been accompanied by a corresponding rise …

Top income inequality rose sharply in the United States over the last 40 years but increased
only slightly in France and Japan. Why? We explore a model in which heterogeneous …