We study optimal monetary and fiscal policies in a New Keynesian model with
heterogeneous agents, incomplete markets, and nominal rigidities. Our approach uses small …

We study the optimal design of means-tested transfers and progressive income taxes. In a
simple analytical model, we show that adding a transfer to a log-linear tax induces welfare …

How should the government respond to automation? We study this question in a
heterogeneous agent model that takes worker displacement seriously. We recognize that …

We derive optimal monetary and fiscal policies in a heterogeneous-agent economy with
nominal frictions and aggregate shocks, and allowing for a rich set of fiscal tools. We first …

This paper develops a new approach to make welfare assessments based on the notion of
Dynamic Stochastic weights, or DS-weights for short. We leverage DS-weights to …

This paper finds that accounting for the human capital development of children has a
quantitatively large effect on the true costs and benefits of providing cash assistance to …

We study the optimal joint design of targeted transfers and progressive income taxes. We
develop a simple analytical model and demonstrate an optimally negative relation between …

Accounting for and managing heterogeneities in economic agents' preferences, information
sets, and opportunities have always been central to macroeconomic theory. Long before …

Using a heterogeneous agent model calibrated to match measured spending dynamics over
four years following an income shock (Fagereng, Holm, and Natvik (2021)), we assess the …

The issuance of public debt affects asset returns in the market, which in turn affects
macroeconomic equilibrium and wealth distribution. We use a two-period overlapping …