Fiscal Policy with Heterogeneous Agents and Incomplete Markets

By Jonathan Heathcote. 2005

268 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/d361b87d9c0578574f111412493b292e5eae1a2a

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Citations in the corpus

On the Distributional Effects of Reducing Capital Taxes (2004, unknown): “See Heathcote (2004) for a discussion.”
Monetary Policy and the Redistribution Channel (2017, unknown): “…of the Mirrleesian model of income taxation (for example Diamond, 1998), and studies of capital taxation (Aiyagari, 1995) or redistribution with incomplete markets (Heathcote, 2005; Correia, 2010). interest-paying assets held directly are roughly balanced at any point in time (see Appendix A.1).”
Fiscal multipliers in the 21st century (2016, background): “…particular, is consistent25 with Ricardian equivalence but poor households show evidence of non-Ricardian behavior.26 In terms of theoretical work, Heathcote (2005) studies the effects of changes in the timing27 3For a good survey of the various approaches for modeling and measuring the impacts…”
The equilibrium effect of fundamentals on house prices and rents (2013, methodology): “18 Using data from the Panel Study of Income Dynamics (PSID), work by Card (1994) and Heathcote et al. (2010b) indicates ρw in the range 0.”
What is a Sustainable Public Debt (2015, unknown): “…mechanism and a tool for altering consumption dispersion in heterogeneous-agents models without default (e.g. Aiyagari and McGrattan (1998), Golosov and Sargent (2012), Azzimonti, de Francisco, and Quadrini (2014), Floden (2001) , Heathcote (2005) and Aiyagari, Marcet, Sargent, and Seppala (2002)).”
Macroeconomics and Household Heterogeneity (2016, background): “…work is also related to McKay and Reis (2016), who conduct a comprehensive study of automatic stabilization programs on business cycle dynamics, to Heathcote (2005), Kaplan and Violante (2014) and Jappelli and Pistaferri (2014), who study the role of discretionary changes in income taxation on…”
Global Waves of Debt: Causes and Consequences (2021, background): “Distortionary taxation and frictions at the financial markets may, however, result in departures from Ricardian equivalence (Heathcote 2005).”
The Distribution of Wealth and the Marginal Propensity to Consume (2017, unknown): “7Heathcote (2005) uses an income process similar to Castaneda, Diaz-Gimenez, and Rios-Rull (2003) to calibrate an economy that matches the empirical wealth heterogeneity and has the aggregate MPC of 0 29, also thanks to households that are credit-constrained.”
Implications of US Tax Policy for House Prices, Rents, and Homeownership (2018, methodology): “Following Heathcote (2005) and Castaneda, Dı́az-Gimenez and Ŕıos-Rull (2003), we model the life cycle as a stochastic transition between various labor productivity states that also allows household’s expected income to rise over time.”
The Fiscal Multiplier (2019, unknown): “Instead, one strand of the literature (e.g., Baxter and King, 1993; Heathcote, 2005; Brinca et al., 2016; Ferriere and Navarro, 2018) assumes flexible prices.”
Precautionary Saving Over the Business Cycle (2016, unknown): “From (17)(20) and the fact that at (with equality in the hand-to-mouth case), we have c t c t and c t c t .”
Targeted transfers and the fiscal response to the great recession (2012, unknown): “…unlike almost all of that literature, as well as on the positive predictions of the model in response to shocks rather than on welfare in the steady state.12 Closer to our paper is Heathcote (2005) who studies the e¤ect of a temporary tax cut on consumption in an incomplete markets economy.”