Cho, Daeha - In: Quantitative economics : QE ; journal of the … 14 (2023) 2, pp. 717-751
This paper uses an estimated Heterogeneous Agent New Keynesian (HANK) model to evaluate the quantitative importance of two channels in driving aggre- gate consumption fluctuations in the US: (i) precautionary savings against un- employment risk and (ii) MPC heterogeneity. I find that MPC...