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Micro Jumps, Macro Humps: monetary policy and business cycles in an estimated HANK model

Adrien Auclert (), Ludwig Straub and Matthew Rognlie ()

No 1449, 2019 Meeting Papers from Society for Economic Dynamics

Abstract: We estimate a Heterogeneous-Agent New Keynesian model that matches existing microeconomic evidence on marginal propensities to consume and macroeconomic ev- idence on the impulse response to a monetary policy shock. We rule out habit forma- tion as an explanation for the hump shape of output, but show that sticky information in the sense of Mankiw and Reis (2002) can rationalize both the micro and the macro data. Our estimated model implies a central role for investment in the monetary transmission mechanism.

Date: 2019
New Economics Papers: this item is included in nep-cba, nep-mac and nep-mon
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Related works:
Working Paper: Micro Jumps, Macro Humps: Monetary Policy and Business Cycles in an Estimated HANK Model (2020) Downloads
Working Paper: Micro Jumps, Macro Humps: Monetary Policy and Business Cycles in an Estimated HANK Model (2020) Downloads
Working Paper: Micro Jumps, Macro Humps: Monetary Policy and Business Cycles in an Estimated HANK Model (2020) Downloads
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