Abstract We recast the Aiyagari–Bewley–Huggett model of income and wealth distribution in
continuous time. This workhorse model—as well as heterogeneous agent models more …

This paper studies the macroeconomic effects of energy price shocks in energy-importing
economies using a heterogeneous-agent New Keynesian model. When MPCs are …

The evaluation of macroeconomic policy decisions has traditionally relied on the formulation
of a specific economic model. In this work, we show that two statistics are sufficient to detect …

We postulate a continuous‐time heterogeneous agent model with a financial sector and
households to study the nonlinear linkages between aggregate and financial variables. In …

We characterize optimal policy rules in business-cycle models with nominal rigidities and
heterogeneous households. The derived rules are expressed in terms of the causal effects …

We show how a heterogeneous agent New Keynesian (HANK) model with incomplete
markets and portfolio choice can be estimated in state space using a Bayesian approach. To …

We show that in a broad class of menu cost models, the first-order dynamics of aggregate
inflation in response to arbitrary shocks to aggregate costs are nearly the same as in Calvo …

I study unemployment insurance (UI) in general equilibrium with incomplete markets, search
frictions, and nominal rigidities. An increase in generosity raises the aggregate demand for …

We study the consequences of “regime-induced” exchange rate depreciations by comparing
outcomes for peggers versus floaters to the US dollar in response to a dollar depreciation …

The prevailing neo‐Wicksellian view holds that the central bank's objective is to track the
natural rate of interest (r*), which itself is largely exogenous to monetary policy. We …