Greg Kaplan

TL;DR: In this article, the authors revisited the transmission mechanism from monetary policy to household consumption in a Heterogeneous Agent New Keynesian (HANK) model and found that the indirect effects of an unexpected cut in interest rates, which operate through a general equilibrium increase in labor demand, far outweigh direct effects such as intertemporal substitution.

TL;DR: This paper developed a structural economic model to interpret the evidence that 20-40 percent of tax rebates are spent on non-durable household consumption in the quarter that they are received.

TL;DR: The authors developed a structural economic model to interpret the evidence that 20-40 percent of tax rebates are spent on non-durable household consumption in the quarter that they are received.

TL;DR: In this paper, the authors revisit the transmission mechanism of monetary policy for household consumption in a Heterogeneous Agent New Keynesian (HANK) model and find that the indirect effects of an unexpected cut in interest rates, which operate through a general equilibrium increase in labor demand, far outweigh direct effects such as intertemporal substitution.

TL;DR: In this paper, the authors use survey data on household portfolios for the U.S., Canada, Australia, the UK, Germany, France, Italy, and Spain to document the share of such households across countries, their demographic characteristics, the composition of their balance sheets, and the persistence of hand-to-mouth status over the life cycle, and explain the implications of this group of consumers for macroeconomic modeling and fiscal policy analysis.