Working Papers

Income and Wealth Distribution in Macroeconomics: A Continuous-Time Approach
(with Yves Achdou, Jiequn Han, Jean-Michel Lasry and Pierre-Louis Lions)
revise & resubmit, Review of Economic Studies
supersedes earlier version "Heterogeneous Agent Models in Continuous Time"
Online Appendix, Slides
Also available as NBER Working Paper 23732
Website with codes for numerical solution (how to solve the stationary equilibrium of a Bewley model in Matlab in a quarter second)
Hard-to-find reference: Ruttscheidt (2018), "Adaptive Sparse Grids for Solving Continuous Time Heterogeneous Agent Models"


Papers in Progress

Saving Behavior across the Wealth Distribution
(with Andreas Fagereng, Martin Holm and Gisle Natvik)

Uneven Growth: Automation's Impact on Income and Wealth Inequality
(with Lukasz Rachel and Pascual Restrepo)

Publications (Including Accepted and Forthcoming Papers)

Optimal Development Policies with Financial Frictions (with Oleg Itskhoki)
Econometrica, 2019
VoxEU column: "Subsidizing Growth"
Online Appendix A, Online Appendix B
Also available as NBER Working Paper 19994

Monetary Policy According to HANK (with Greg Kaplan and Gianluca Violante)
American Economic Review, 2018
Online Appendix, Slides, Video, Podcast, Replication Materials, Computational Algorithm
Also available as NBER Working Paper 21897
Supplement: A Note on Unconventional Monetary Policy in HANK

When Inequality Matters for Macro and Macro Matters for Inequality
(with SeHyoun Ahn, Greg Kaplan, Tom Winberry and Christian Wolf)
Slides, Toolbox (Github), Example 1: using the toolbox to solve Krusell-Smith model, Example 2: using the toolbox to solve a one-asset HANK model
NBER Macroeconomics Annual, 2018
Also available as NBER Working Paper 23494

Life-Cycle Wage Growth Across Countries
(with David Lagakos, Tommaso Porzio, Nancy Qian and Todd Schoellman)
Journal of Political Economy, 2018
supersedes earlier version "Experience Matters" (NBER Working Paper 18602)
data for experience-wage profiles in Figures 1 and 2

Life-Cycle Human Capital Accumulation Across Countries: Lessons From U.S. Immigrants
(with David Lagakos, Tommaso Porzio, Nancy Qian and Todd Schoellman)
Journal of Human Capital, Special Issue in Honor of Gary Becker, 2018
data for experience-wage profiles in Figures 1 and 2

Social Optima in Economies with Heterogeneous Agents (with Galo Nuño)
Review of Economic Dynamics, 2017

Economic Development, Flow of Funds and the Equilibrium Interaction of Financial Frictions
(with Robert M. Townsend and Victor Zhorin)
Proceedings of the National Academy of Sciences, 2017

The Dynamics of Inequality
(with Xavier Gabaix, Jean-Michel Lasry and Pierre-Louis Lions)
Econometrica, 2016
Online Appendix, Online Appendix 2, Slides
Appendix E: The Dynamics of Wealth Inequality
Also available as NBER Working Paper 21363
Related, just for fun: Pareto's 1896 formulation of his distribution
(see bottom/top p.304/305, eq (1), eq top of p.306. Pages from "Cours d'économie politique")

PDE Models in Macroeconomics
(with Yves Achdou, Francisco J. Buera, Jean-Michel Lasry and Pierre-Louis Lions)
Philosophical Transactions of the Royal Society A, 2014, themed issue on “PDE Models in the Socio-Economic Sciences”
Economists may want to read this version with more economist-friendly notation.
Related and hard-to-find reference: Kolmogorov, Petrovskii and Piskunov (1937) (Ch.6 in this book)

Aggregate Implications of a Credit Crunch: The Importance of Heterogeneity
(with Francisco J. Buera)
American Economic Journal: Macroeconomics, 2015

Productivity Losses from Financial Frictions: Can Self-financing Undo Capital Misallocation?
American Economic Review, 2014
Online Appendix
Extra Appendix 1: The Model in Discrete Time and with iid Shocks
Extra Appendix 2: Closed Form Solution of a Neoclassical Growth Model with Capitalists and Workers
MATLAB code for computing transition dynamics described in Appendix C
Job market paper version (October 2010)

Knowledge Growth and the Allocation of Time (with Robert E. Lucas, Jr.)
Journal of Political Economy, 2014
MATLAB codes for computing Balanced Growth Paths described in Section 3

Well-Intended Policies (with Francisco J. Buera and Yongseok Shin)
Review of Economic Dynamics, Special Issue on Misallocation, 2013

Why Does Misallocation Persist? (with Abhijit Banerjee)
American Economic Journal: Macroeconomics, 2010


Notes and Old Working Papers

Note: Inequality and Financial Development: A Power-Law Kuznets Curve

Creditor Rights, Inequality and Development in a Neoclassical Growth Model

Capital Accumulation With Interdependent Countries