We provide an information-based theory of matching efficiency fluctuations. Rationally inattentive firms have limited …

power-law behavior with a strict ranking of upper tail inequality, in that order, from the least to the most unequal. We …. We underscore the importance of these results by showing that all four dimensions of top inequality jointly determine the …

How much does inequality matter for the business cycle and vice versa? Using a Bayesian likelihood approach, we … income risk and taxes. We find that adding data on inequality does not materially change the estimated shocks and frictions … income inequality. The systematic components of monetary and fiscal policy are important for inequality as well. …