What model features and calibration strategies yield a large average marginal propensity to
consume (MPC) in heterogeneous agent models? Through a systematic investigation of …

In response to the record-breaking COVID19 recession, many governments have adopted
unprecedented fiscal stimuli. While countercyclical fiscal policy is effective in fighting …

In this paper, we use transaction‐level bank account data from Denmark to study the
dynamics of consumer spending during the COVID‐19 pandemic. We document that …

Using a large-scale survey of US consumers, we study how the large one-time transfers to
individuals from the CARES Act affected their consumption, saving and labor-supply …

Exploiting variation in the timing of resets of adjustable-rate mortgages (ARMs), we find that
a sizable decline in mortgage payments (up to 50 percent) induces a significant increase in …

In this essay, we discuss the emerging literature in macroeconomics that combines
heterogeneous agent models, nominal rigidities, and aggregate shocks. This literature …

A key issue in current research and policy is the size of fiscal multipliers when the economy
is in recession. We provide three insights. First, using regime-switching models, we find …

A wide body of empirical evidence finds that approximately 25 percent of fiscal stimulus
payments (eg, tax rebates) are spent on nondurable household consumption in the quarter …

We use sizable lottery prizes in Norwegian administrative panel data to explore how
transitory income shocks are spent and saved over time and how households' marginal …

We measure the change in household spending caused by receipt of the economic stimulus
payments of 2008, using questions added to the Consumer Expenditure Survey and …