Kurt Mitman received a grant for the project ”Micro Heterogeneity and Macroeconomic Policy”.

 

Abstract:

This project will develop macroeconomic models with household heterogeneity and partially demand-determined output to study how the economy is affected by monetary and fiscal policy, and to investigate the importance of housing in macroeconomic fluctuations and the transmission and efficacy of policy.  The objective is to provide a modelling framework that simultaneously is consistent with both empirical micro evidence on household consumption and savings behaviour, and macro evidence on the response of the aggregate economy to a variety of economic shocks. The ultimate goal is to help make these models the new standard for the study of fluctuations and policy evaluation in macro.