Heterogeneity and Aggregate Fluctuations

• 成果类型: Article
• 署名作者: Chang, Minsu; Chen, Xiaohong; Schorfheide, Frank
• 署名单位: Seoul National University (SNU); Yale University; University of Pennsylvania; National Bureau of Economic Research
• 刊物名称: JOURNAL OF POLITICAL ECONOMY
• ISSN/ISSBN: 0022-3808
• DOI: 10.1086/731411
• 发表日期: 2024
• 页码: 4021-4067
• 关键词: policy; MODEL; INEQUALITY; shocks; priors; macro

摘要

We develop a state-space model with a transition equation that takes the form of a functional vector autoregression (VAR) and stacks macroeconomic aggregates and a cross-sectional density. The measurement equation captures the error in estimating log densities from repeated cross-sectional samples. The log densities and their transition kernels are approximated by sieves, which leads to a finite-dimensional VAR for macroeconomic aggregates and sieve coefficients. With this model, we study the dynamics of technology shocks, GDP (gross domestic product), employment, and the earnings distribution. We find that spillovers between aggregate and distributional dynamics are generally small, that a positive technology shock tends to decrease inequality, and that a shock that raises earnings inequality leads to a small and insignificant GDP response.