Managing Inequality over Business Cycles: Optimal Policies with Heterogeneous Agents and Aggregate Shocks
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1 décembre 2020
- handle: 10670/1.riryv3
- hal: hal-03476095
- SCIENCESPO: 2441/4lhe3u3c38ojohjlcbfaupcjr
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info:eu-repo/semantics/altIdentifier/hdl/2441/4lhe3u3c38ojohjlcbfaupcjr
info:eu-repo/semantics/OpenAccess
Mots-clés
Incomplete markets Optimal policies Heterogeneous agent models E - Macroeconomics and Monetary Economics/E.E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy/E.E2.E21 - Consumption • Saving • Wealth E - Macroeconomics and Monetary Economics/E.E4 - Money and Interest Rates/E.E4.E44 - Financial Markets and the Macroeconomy D - Microeconomics/D.D9 - Intertemporal Choice/D.D9.D91 - Intertemporal Household Choice • Life Cycle Models and Saving D - Microeconomics/D.D3 - Distribution/D.D3.D31 - Personal Income, Wealth, and Their DistributionsSujets proches
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François Le Grand et al., « Managing Inequality over Business Cycles: Optimal Policies with Heterogeneous Agents and Aggregate Shocks », HAL-SHS : économie et finance, ID : 10670/1.riryv3
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Résumé
We present a truncation theory of idiosyncratic histories for heterogeneous agent models. This method allows us to derive optimal Ramsey policies in heterogeneous agent models with aggregate shocks, in general frameworks. We use this method to characterize the optimal level of unemployment insurance over the business cycle in a production economy, with occasionally binding credit constraints.