“The Heterogeneous-Agent New Keynesian Model”
E1016917
“The Heterogeneous-Agent New Keynesian Model” is an influential macroeconomic framework that incorporates household heterogeneity and incomplete markets into New Keynesian analysis to better explain consumption, inequality, and monetary policy transmission.
Observed surface forms (1)
| Surface form | Occurrences |
|---|---|
| The Heterogeneous-Agent New Keynesian Model | 0 |
Statements (51)
| Predicate | Object |
|---|---|
| instanceOf |
New Keynesian model
ⓘ
heterogeneous-agent model ⓘ macroeconomic model ⓘ |
| captures |
heterogeneous consumption responses to shocks
ⓘ
heterogeneous labor supply responses ⓘ income distribution dynamics ⓘ role of asset-rich households ⓘ role of constrained borrowers ⓘ role of hand-to-mouth households ⓘ wealth distribution dynamics ⓘ |
| contrastsWith | Representative-Agent New Keynesian Model ⓘ |
| emphasizes |
distributional channels of monetary policy
ⓘ
heterogeneous marginal propensities to consume ⓘ importance of incomplete insurance ⓘ interaction between inequality and aggregate demand ⓘ role of borrowing constraints ⓘ role of liquid and illiquid assets ⓘ |
| field |
business cycle theory
ⓘ
macroeconomics ⓘ monetary economics ⓘ |
| hasAbbreviation | HANK model NERFINISHED ⓘ |
| keyFeature |
general equilibrium
ⓘ
household heterogeneity ⓘ idiosyncratic income risk ⓘ incomplete markets ⓘ liquidity constraints ⓘ marginal propensity to consume heterogeneity ⓘ nominal rigidities ⓘ sticky prices ⓘ wealth heterogeneity ⓘ |
| purpose |
analyze distributional effects of monetary policy
ⓘ
analyze monetary policy transmission ⓘ evaluate stabilization policy ⓘ study consumption dynamics ⓘ study inequality dynamics ⓘ |
| relatedConcept |
Heterogeneous-Agent Dynamic Stochastic General Equilibrium model
NERFINISHED
ⓘ
Representative-Agent New Keynesian model ⓘ Two-Agent New Keynesian model ⓘ consumption-savings problem with idiosyncratic risk ⓘ incomplete markets macroeconomics ⓘ |
| requires |
calibration or estimation to micro data
ⓘ
numerical methods ⓘ solution of high-dimensional heterogeneous-agent economies ⓘ |
| theoreticalApproach | New Keynesian economics NERFINISHED ⓘ |
| usedFor |
fiscal-monetary interaction analysis
ⓘ
monetary policy design ⓘ quantitative policy analysis ⓘ study of forward guidance effects ⓘ study of unconventional monetary policy ⓘ study of zero lower bound episodes ⓘ welfare analysis across households ⓘ |
Referenced by (1)
Full triples — surface form annotated when it differs from this entity's canonical label.