Replication data for: Monetary Policy According to HANK

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

Version:  View help for Version V1

Name File Type Size Last Modified
  20160042_data 05/30/2025 01:09:AM
Changelog.txt text/plain 460 bytes 05/29/2025 09:10:PM
LICENSE.txt text/plain 14.6 KB 05/29/2025 09:10:PM
Manifest-v0.txt text/plain 865.3 KB 05/29/2025 09:10:PM
Manifest-v1.txt text/plain 82.1 KB 05/29/2025 09:10:PM
original.zip application/zip 178.1 MB 05/29/2025 09:10:PM

Project Citation: 

Kaplan, Greg, Moll, Benjamin, and Violante, Giovanni L. Replication data for: Monetary Policy According to HANK. Nashville, TN: American Economic Association [publisher], 2018. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2025-05-30. https://doi.org/10.3886/E231376V1

Project Description

Summary:  View help for Summary We revisit the transmission mechanism from monetary policy to household consumption in a Heterogeneous Agent New Keynesian (HANK) model. The model yields empirically realistic distributions of wealth and marginal propensities to consume because of two features: uninsurable income shocks and multiple assets with different degrees of liquidity and different returns. In this environment, the indirect effects of an unexpected cut in interest rates, which operate through a general equilibrium increase in labor demand, far outweigh direct effects such as intertemporal substitution. This finding is in stark contrast to small- and medium-scale Representative Agent New Keynesian (RANK) economies, where the substitution channel drives virtually all of the transmission from interest rates to consumption. Failure of Ricardian equivalence implies that, in HANK models, the fiscal reaction to the monetary expansion is a key determinant of the overall size of the macroeconomic response.

Scope of Project

JEL Classification:  View help for JEL Classification
      D31 Personal Income, Wealth, and Their Distributions
      E12 General Aggregative Models: Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
      E21 Macroeconomics: Consumption; Saving; Wealth
      E24 Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
      E43 Interest Rates: Determination, Term Structure, and Effects
      E52 Monetary Policy
      E62 Fiscal Policy


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V1 [2025-05-30]

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