Shocks , Frictions , and Inequality in US Business Cycles

• 成果类型: Article
• 署名作者: Bayer, Christian; Born, Benjamin; Luetticke, Ralph
• 署名单位: University of Bonn; Leibniz Association; Ifo Institut; IZA Institute Labor Economics; Leibniz Association; Ifo Institut; Frankfurt School Finance & Management; Leibniz Association; Ifo Institut; Eberhard Karls University of Tubingen
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20201875
• 发表日期: 2024
• 页码: 1211-1247
• 关键词: monetary-policy; precautionary savings; income; transmission; models; WEALTH; tax; DYNAMICS; GROWTH; macro

摘要

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 render estimation feasible , the structure of the economy can be exploited and the dimensionality of the model automatically reduced based on the Bayesian priors. We apply this approach to analyze how much inequality matters for the business cycle and vice versa. Even when the model is estimated on aggregate data alone and with a set of shocks and frictions designed to match aggregate data , it broadly reproduces observed US inequality dynamics.