Inequality, Business Cycles, and Monetary-Fiscal Policy

• 成果类型: Article
• 署名作者: Bhandari, Anmol; Evans, David; Golosov, Mikhail; Sargent, Thomas J.
• 署名单位: University of Minnesota System; University of Minnesota Twin Cities; University of Oregon; University of Chicago; New York University
• 刊物名称: ECONOMETRICA
• ISSN/ISSBN: 0012-9682
• DOI: 10.3982/ECTA16414
• 发表日期: 2021
• 页码: 2559-2599
• 关键词: income; RISK; GROWTH; models; redistribution; frictions; taxation; MARKETS; COSTS; tax

摘要

We study optimal monetary and fiscal policies in a New Keynesian model with heterogeneous agents, incomplete markets, and nominal rigidities. Our approach uses small-noise expansions and Frechet derivatives to approximate equilibria quickly and efficiently. Responses of optimal policies to aggregate shocks differ qualitatively from what they would be in a corresponding representative agent economy and are an order of magnitude larger. A motive to provide insurance that arises from heterogeneity and incomplete markets outweighs price stabilization motives.