Ben Moll on the Basics of HANK Models and How They Can Be Applied to Policymaking
Macro Musings with David Beckworth
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Heterogeneity Doesn't Matter Much for Macro Aggregation
In the early heterogeneous agiant models of thioof a second generation, if you want, of theories of distribution in maco. The typical finding is actully that heterogeneity doesn't matter all that much for macro aggregateandte sort of well known articulation of this is a result by cricel and smith. And so as a result, inequality doesn't matter much for mackerel. But then more recent theories started to incorporate micro gnaty, particularly in income and wealth into these a models. This leads them to emphasize things lak houseold balance sheets, credit constraints, margin, popensities consumed that are high on average. So they move away from this
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