Topic: "The Macroeconomic Consequences of Exchange Rate Depreciations" Abstract: We study the consequences of “regime-induced” exchange rate depreciations by comparing outcomes for peggers versus floaters to the US dollar in response to a dollar depreciation. Pegger currencies depreciate relative to floater currencies and these depreciations are strongly expansionary. The boom is not as...
Topic: "Shopping Frictions and Household Heterogeneity: Theory and Empirics" Abstract: This paper shows that price dispersion matters for shaping individual household consumption. Using detailed scanner data, I document that the high-earning employees pay from 2 to 7% higher prices than the low-earning ones for exactly the same or very similar goods. The causal link between the income level...
Topic: "Stage-Based Identification of Policy Effects" Abstract: We develop a method that identifies the effects of nationwide policy, i.e., policy implemented across all regions at the same time. In our method, we put forward the idea of tracking outcome paths in terms of stages rather than time, where a stage of a regional outcome at time t is its location on the support of a reference path...
Topic: "HOW DO GASOLINE PRICES RESPOND TO A COST SHOCK?" Abstract: In a broad class of sticky price models, theory predicts that the ratio of the kurtosis to the frequency of price changes is a sufficient statistic for the cumulative impulse response of prices (CIRP) to a nominal shock. Using several millions of daily gasoline prices in France, we provide supporting evidence of this predicti...
Topic: "Assortative Mating and Wealth Inequality" Abstract:We use population data on capital income and wealth holdings for Norway to measure asset positions and wealth returns before individuals marry and after the household is formed. These data allow us to establish a number of novel facts. First, individuals sort on personal wealth rather than parents' wealth. Assortative mating on own wea...
Title: "A Fair Day’s Pay for a Fair Day’s Work: Optimal Tax Design as Redistributional Arbitrage" Abstract:We study optimal tax design based on the idea that policy-makers face trade-offs betweenmultiple margins of redistribution. Within a Mirrleesian economy with labor income, consumption,and retirement savings, we derive a novel formula for optimal non-linear income and savingsdistortions...
Topic: "Estimating Nonlinear Heterogeneous Agents Models with Neural Networks” Abstract: Economists typically make simplifying assumptions to make the solution and estimation of their highly complex models feasible. These simplifications include approximating the true nonlinear dynamics of the model, disregarding aggregate uncertainty or assuming that all agents are identical. While relaxi...
Topic: Expectation and Wealth Heterogeneity in the Macroeconomy Abstract: We document systematic differences in macroeconomic expectations across U.S. households and rationalize our findings with a theory of information choice. We embed this theory into an incomplete-markets model with aggregate risk. Our model is quantitatively consistent with the pattern of expectation heterogeneity in the...
Each Event will be announced separatly with more information at least three days ahead. dateSpeakerTopic05.04.2023Alexandre Kohlhas (Oxford)"Expectation and Wealth Heterogeneity in the Macroeconomy"12.04.2023Matthias Rottner (Bundesbank)"Estimating Nonlinear Heterogeneous Agents Models with Neural Networks”19.04.2023Nicolas Werquin (Chicago Fed)"A Fair Day’s Pay for a Fair Day’s Work: Opt...
The cluster ECONtribute: Markets and Public Policy, together with the University of Cologne, will be funded as a Cluster of Excellence by the German Research Foundation (DFG). Congratulations to the spokespersons Isabel Schnabel (University of Bonn) and Felix Bierbrauer (University of Cologne)...