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. …

Marriage is one of the most important determinants of economic prosperity, yet most existing theories of inequality … account for these empirical facts, I develop a theory based on an otherwise standard incomplete-markets OLG model with ex …