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 …

Life-cycle portfolio choice models capture the role of human capital, housing, borrowing
constraints, background risk, and several other crucial ingredients for determining the …

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 …

This paper demonstrates that neutral real interest rates would have declined by far more
than what has been observed in the industrial world and would in all likelihood be …

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 …

Individual earnings are higher in bigger cities. We consider three reasons: spatial sorting of
initially more productive workers, static advantages from workers' current location, and …

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 …

A wide body of empirical evidence finds that approximately 25 percent of fiscal stimulus
payments (eg, tax rebates) are spent on nondurable household consumption in the quarter …

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

We argue that the economy of the industrialized world taken as a whole is currently–and for
the foreseeable future will remain–highly prone to secular stagnation. But for extraordinary …