Universität Bonn

Department of Economics

Andreas Schaab - UC Berkeley

“Monetary and Fiscal Policy According to HANK-IO” w/ Stacy Yingqi Tan

Abstract

This paper studies monetary and fiscal policy transmission in a multi-sector heterogeneous-agent New Keynesian model with an input-output network (“HANK-IO”). We document systematic household-sector linkages in micro data and calibrate our model to match them. To identify when these linkages have implications for policy transmission, we analytically characterize an as-if benchmark that features a strict decoupling between household and sectoral heterogeneity. Away from this benchmark, novel earnings and expenditure heterogeneity channels emerge that govern the propagation of demand and supply shocks. Quantitatively, these channels shape the transmission of stabilization policy to aggregates, as well as its distributional and sectoral consequences.

Additional information:

  • Speaker: Andreas Schaab
  • Time: Wednesday, 17.12.2025, 12:15 - 13:30 
  • Location: Faculty Room, (Room U 1.040)
  • Further links:
  • Organizer: Finance Group (joint with macro)
  • Contact: