Over the last several decades, there has been a large increase in asset valuations across
many asset classes. While these rising valuations had important effects on the distribution of …

We develop a framework to measure the welfare impact of inflationary shocks throughout the
distribution. The first-order impact of a shock is summarized by the induced movements in …

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 characterizes optimal monetary policy in a canonical heterogeneous-agent New
Keynesian (HANK) model with wage rigidity. Under discretion, a utilitarian planner faces the …

This paper studies the optimal determination of deposit insurance when bank runs are
possible. We show that the welfare impact of changes in the level of deposit insurance …

The bulk of cash is held for store of value purposes, with such holdings sharply increasing in
times of high economic uncertainty and only a fraction of the population choosing to hoard …

We compare two approaches in their ability to solve for optimal Ramsey policies in
heterogeneous-agent models, considering the optimal provision of a public good. First, the …

This paper studies the social value of closing price differentials in financial markets. We
show that arbitrage gaps exactly correspond to the marginal social value of executing an …

This paper develops a welfare accounting decomposition that identifies and quantifies the
ultimate origins of welfare gains and losses in general economies with heterogeneous …