Replication data for: Microeconomic Heterogeneity and Macroeconomic Shocks

Principal Investigator(s):  View help for Principal Investigator(s) Greg Kaplan; Giovanni L. Violante

Version:  View help for Version V1

Name File Type Size Last Modified
  .imdone 10/12/2019 06:45:PM
  HANK 10/12/2019 06:45:PM
  __relax 10/12/2019 06:45:PM
  model_decomp 10/12/2019 06:44:PM
  model_flex 10/12/2019 06:45:PM
  model_sticky 10/12/2019 06:45:PM
.gitignore text/plain 307 bytes 10/12/2019 02:45:PM
FIGURES.tex text/x-tex 1017 bytes 10/12/2019 02:45:PM
FiguresTransition.m text/plain 14.2 KB 10/12/2019 02:45:PM
HeadingsTable.tex text/x-tex 193 bytes 10/12/2019 02:45:PM

Citation: 

Kaplan, Greg, and Violante, Giovanni L. Replication data for: Microeconomic Heterogeneity and Macroeconomic Shocks: JEP_rank JEP. Nashville, TN: American Economic Association [publisher], 2018. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E114014V1-23523

To view the citation for the overall project, see http://doi.org/10.3886/E114014V1.

Project Description

Summary:  View help for Summary In this essay, we discuss the emerging literature in macroeconomics that combines heterogeneous agent models, nominal rigidities, and aggregate shocks. This literature opens the door to the analysis of distributional issues, economic fluctuations, and stabilization policies—all within the same framework. In response to the limitations of the representative agent approach to economic fluctuations, a new framework has emerged that combines key features of heterogeneous agents (HA) and New Keynesian (NK) economies. These HANK models offer a much more accurate representation of household consumption behavior and can generate realistic distributions of income, wealth, and, albeit to a lesser degree, household balance sheets. At the same time, they can accommodate many sources of macroeconomic fluctuations, including those driven by aggregate demand. In sum, they provide a rich theoretical framework for quantitative analysis of the interaction between cross-sectional distributions and aggregate dynamics. In this article, we outline a state-of-the-art version of HANK together with its representative agent counterpart, and convey two broad messages about the role of household heterogeneity for the response of the macroeconomy to aggregate shocks: 1) the similarity between the Representative Agent New Keynesian (RANK) and HANK frameworks depends crucially on the shock being analyzed; and 2) certain important macroeconomic questions concerning economic fluctuations can only be addressed within heterogeneous agent models.

Scope of Project

JEL Classification:  View help for JEL Classification
      D11 Consumer Economics: Theory
      E12 General Aggregative Models: Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
      E21 Macroeconomics: Consumption; Saving; Wealth
      E23 Macroeconomics: Production
      E32 Business Fluctuations; Cycles
      E63 Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
      G01 Financial Crises


Related Publications

Download this project

Published Versions

V1 [2019-10-12]

Export Metadata

Dublin Core

DDI 2.5

Report a Problem

Found a serious problem with the data, such as disclosure risk or copyrighted content? Let us know.

This material is distributed exactly as it arrived from the data depositor. ICPSR has not checked or processed this material. Users should consult the investigator(s) if further information is desired.