MANAGING INEQUALITY OVER BUSINESS CYCLES: OPTIMAL POLICIES WITH HETEROGENEOUS AGENTS AND AGGREGATE SHOCKS

• 成果类型: Article
• 署名作者: Le Grand, Francois; Ragot, Xavier
• 署名单位: emlyon business school; Swiss Federal Institutes of Technology Domain; ETH Zurich; Institut d'Etudes Politiques Paris (Sciences Po); Centre National de la Recherche Scientifique (CNRS); Institut d'Etudes Politiques Paris (Sciences Po)
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12537
• 发表日期: 2022
• 页码: 511-540
• 关键词: macroeconomic approach; precautionary savings; incomplete markets; cyclical behavior; unemployment; macro; income; RISK; uncertainty; liquidity

摘要

We present a truncation theory of idiosyncratic histories for heterogeneous-agent models. This method allows us to solve for optimal Ramsey policies in such models with aggregate shocks. The method can be applied to a large variety of settings, with occasionally binding credit constraints. We use this theory to characterize the optimal level of unemployment insurance over the business cycle in a production economy. We find that the optimal policy is countercyclical.