Per Krusell
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View article: Integrated epi‐econ assessment: Quantitative theory
Integrated epi‐econ assessment: Quantitative theory Open
Aimed at pandemic preparedness, we construct a framework for integrated epi‐econ assessment that we believe would be useful for policymakers, especially at the early stages of a pandemic outbreak. We offer theory, calibration to micro‐, ma…
View article: Macroeconomic Dynamics with Rigid Wage Contracts
Macroeconomic Dynamics with Rigid Wage Contracts Open
We adapt the wage contracting structure in Chari (1983) to a dynamic, balanced-growth setting with recontracting as in Calvo (1983). The resulting wage-rigidity framework dampens income effects in the short run, thus allowing significant r…
View article: Fiscal multipliers: A heterogenous‐agent perspective
Fiscal multipliers: A heterogenous‐agent perspective Open
We use an analytically tractable heterogeneous‐agent (HANK) version of the standard New Keynesian model to show how the size of fiscal multipliers depends on (i) the distribution of factor incomes, and (ii) the source of nominal rigidities…
View article: Climate Change Around the World
Climate Change Around the World Open
The economic effects of climate change vary across both time and space.To study these effects, this paper builds a global economy-climate model featuring a high degree of geographic resolution.Carbon emissions from the use of energy in pro…
View article: A World Equilibrium Model of the Oil Market
A World Equilibrium Model of the Oil Market Open
We use new, comprehensive micro data on oil fields to build and estimate a structural model of the oil industry embedded in a general equilibrium model of the world economy. In the model, firms that belong to Organization of the Petroleum …
View article: Finite resources and the world economy
Finite resources and the world economy Open
We build and evaluate a global macroeconomic model incorporating natural-resource scarcity. The model features low short-run substitutability between the natural resource and other inputs, while in the longer run endogenous directed techni…
View article: <i>Presidential Address 2020</i> Suboptimal Climate Policy
<i>Presidential Address 2020</i> Suboptimal Climate Policy Open
There is a scientific consensus that human activities, in the form of emissions of carbon dioxide into the atmosphere, cause global warming. These emissions mostly occur in the marketplace, that is, they are undertaken by private individua…
View article: Fiscal Multipliers: A Heterogenous-Agent Perspective
Fiscal Multipliers: A Heterogenous-Agent Perspective Open
We use an analytically tractable heterogeneous-agent (HANK) version of the standard New Keynesian model to show how the size of fiscal multipliers depends on i) the distribution of factor incomes, and ii) the source of nominal rigidities.W…
View article: Integrated Epi-Econ Assessment
Integrated Epi-Econ Assessment Open
We formulate an economic time use model and add to it an epidemiological SIR block.In the event of an epidemic, households shift their leisure time from activities with a high degree of social interaction to activities with less, and also …
View article: Gross Worker Flows and Fluctuations in the Aggregate Labor Market
Gross Worker Flows and Fluctuations in the Aggregate Labor Market Open
We build a three-state general equilibrium model of the aggregate labor market that features both standard labor supply forces and labor market frictions.Our model matches key features of the cyclical properties of employment, unemployment…
View article: Directed technical change as a response to natural-resource scarcity
Directed technical change as a response to natural-resource scarcity Open
How do markets economize on scarce natural resources? With an application to fossil energy, we emphasize technological change aimed at saving on the scarce resource. We develop quantitative macroeconomic theory as a tool for interpreting t…
View article: The Consequences of Uncertainty: Climate Sensitivity and Economic Sensitivity to the Climate
The Consequences of Uncertainty: Climate Sensitivity and Economic Sensitivity to the Climate Open
We construct an integrated assessment model with multiple energy sources—two fossil fuels and green energy—and use it to evaluate ranges of plausible estimates for the climate sensitivity, as well as for the sensitivity of the economy to c…
View article: Exploiting MIT Shocks in Heterogeneous-Agent Economies: The Impulse Response as a Numerical Derivative
Exploiting MIT Shocks in Heterogeneous-Agent Economies: The Impulse Response as a Numerical Derivative Open
We propose a new method for computing equilibria in heterogeneous-agent models with aggregate uncertainty.The idea relies on an assumption that linearization offers a good approximation; we share this assumption with existing linearization…
View article: A World Equilibrium Model of the Oil Market
A World Equilibrium Model of the Oil Market Open
We use new, comprehensive micro data on oil fields to build and estimate a structural model of the oil industry embedded in a general equilibrium model of the world economy.In the model, firms that belong to OPEC act as a cartel.The remain…
View article: Replication data for: Gross Worker Flows over the Business Cycle
Replication data for: Gross Worker Flows over the Business Cycle Open
We build a hybrid model of the aggregate labor market that features both standard labor supply forces and frictions in order to study the cyclical properties of gross worker flows across the three labor market states: employment, unemploym…
View article: The Historical Evolution of the Wealth Distribution: A Quantitative-Theoretic Investigation
The Historical Evolution of the Wealth Distribution: A Quantitative-Theoretic Investigation Open
We derive qualitative and quantitative predictions of a microfounded model of wealth inequality and look at how the model's predictions compare with actual outcomes in the United States over the postwar period. The model's microeconomic co…
View article: The New Keynesian Transmission Mechanism: A Heterogenous-Agent Perspective
The New Keynesian Transmission Mechanism: A Heterogenous-Agent Perspective Open
We argue that a 2-agent version of the standard New Keynesian model-where a "worker" receives only labor income and a "capitalist" only profit income-offers insights about how income inequality affects the monetary transmission mechanism.U…