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 …

What shapes the optimal degree of progressivity of the tax and transfer system? On the one
hand, a progressive tax system can counteract inequality in initial conditions and substitute …

We study the effects of a credit crunch on consumer spending in a heterogeneous-agent
incomplete-market model. After an unexpected permanent tightening in consumers' …

Household finance—the normative and positive study of how households use financial
markets to achieve their objectives—has gained a lot of attention over the past decade and …

We propose a summary statistic for the economic well-being of people in a country. Our
measure incorporates consumption, leisure, mortality, and inequality, first for a narrow set of …

This paper provides a critical survey of the large literature on the life cycle model of
consumption, both from an empirical and a theoretical point of view. It discusses several …

The marketization of factor prices is not only an important component of pricing reforms but
also a decisive determinant of innovation efficiency (IE). A good social welfare (SW) system …

We develop a multi-sector gravity model with heterogeneous workers to quantify the
aggregate and group-level welfare effects of trade. The model generalizes the specific …

In recent decades, American workers have faced a rising college premium, a narrowing
gender gap, and increasing wage volatility. This paper explores the quantitative and welfare …

Theoretical and empirical studies exploring the effects of income inequality upon growth
reach a disappointing inconclusive result. This paper postulates that one reason for this …