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 …

Macroeconomics at the intermediate and graduate levels rests on three workhorses: the
Solow-Swan model, the overlapping generations (OLG) model, and the Ramsey model. The …

We develop a model with partial insurance against idiosyncratic wage shocks to quantify risk
sharing. Closed-form solutions are obtained for equilibrium allocations and for moments of …

This paper contributes to the debate initiated by Galí in 1999. I provide a theory with capital
income taxation, labor hoarding as well as long-run shifts in the social attitudes to the …

This paper quantifies the macroeconomic implications of the lack of insurance against
idiosyncratic labor market risk. I show that in a model economy calibrated to observed …

We develop numerically stable and accurate stochastic simulation approaches for solving
dynamic economic models. First, instead of standard least‐squares approximation methods …

This paper employs a large-scale overlapping generation model quantifying that
demographics account for a decrease in the natural real interest rate of about 1.4 …

By the end of 2019, US output was 14% below the level predicted by its pre-2008 trend. To
understand why, I develop and estimate a model of the United States with demographics …

We survey numerical methods that are tractable in dynamic economic models with a finite,
large number of continuous state variables.(Examples of such models are new Keynesian …

This paper studies the properties of the solution to the heterogeneous agents model in Den
Haan et al.[2009. Computational suite of models with heterogeneous agents: incomplete …