UCL Department of Economics


Macroeconomic Dynamics with Heterogeneous Agents*

10-11 June 2013

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Organisers: Orazio Attanasio (UCL) and Paolo Surico (LBS)

Location: Lecture Theatre 10, Sainsbury building, London Business School campus.

Click here for free registration.

Printable programme

In the aftermath of the recent financial crisis, governments and central banks around the world have sought to support the economy through expansionary fiscal and monetary policies.  Considerable uncertainty (and disagreement among economists/policy makers) remains about the aggregate impact of these interventions. At the heart of this uncertainty lays the recognition that the effects of macroeconomic policies on the real economy cannot be fully understood without explicit consideration of distributional dynamics across households and firms.

The conference will bring together a fantastic mix of quantitative macroeconomists and applied microeconometricians that will share their views on the empirical usefulness of various approaches to quantify the heterogeneity in the responses of economic agents to policy and other structural shocks. The research agenda exposited throughout the conference will highlight the open questions faced in this field and the interaction among the participants will hopefully pave the way for a resolution to some of these questions.

 Monday 10th June
10:00-10:30 Registration and coffee in S1 Lounge.

Car Purchases over the Business Cycle

Orazio Attanasio (University College London). With Padula and Ravn. Discussant: Richard Disney (Institute for Fiscal Studies)


Redistributive Taxation in a Partial Insurance Economy

Jonathan Heathcote (Fed Bank of Minneapolis). With Storesletten and Violante. Discussant: Nicola Pavoni (Bocconi University)

Buffet Lunch in Garden Room

Segmented Housing Search

Monika Piazzesi (Stanford University). With Schneider and Stroebel. Discussant: Silvana Tenreyro (London School of Economics)


The Housing CCAPM with Adjustment Costs and Heterogeneous Agents

Marjorie Flavin (University of California San Diego). With Liang. Discussant: Vincent Sterk (University College London)

Coffee Break in S1 Lounge

Capital Requirements in a Quantitative Model of Banking Industry Dynamics

Dean Corbae (University of Winsconsis at Madison). With D’Erasmo. Discussant: Jose-Luis Peydro (Universitat Pompeu Fabra)


Monetary Policy with Heterogeneous Agents

Makoto Nakajima (Fed Bank of Philadelphia). With Gornemann and Kuester. Discussant: Thijs Van Rens (University of Warwick)

Reception in Dining Room
Workshop dinner on LBS Campus

*This workshop has been funded by the European Research Council Starting Grant 263429.

 Tuesday 11th June

Household Balance Sheets, Consumption, and the Economic Slump

Atif Mian (Princeton University). With Rao and Sufi. Discussant: Tullio Jappelli (University of Naples Federico II)


Household Debt and the Dynamic Effects of Income Tax Changes

Paolo Surico (London Business School). With Cloyne. Discussant: Ethan Ilzetzki (London School of Economics)

11:00-11:30 Coffee Break in S1 Lounge

Fiscal Policy and MPC Heterogeneity

Luigi Pistaferri (Stanford University). With Jappelli. Discussant: Fabrizio Perri (Bocconi University)

12:30-13:30 Buffet Lunch in Garden Room

Balance Sheet Recessions

Jose-Victor Rios-Rull (University of Minnesota). With Huo. Discussant: Dirk Krueger (University of Pennsylvania)


Uncertainty Shocks, Asset Supply and Pricing over the Business Cycle

Martin Schneider (Stanford University). With Bianchi and Ilut. Discussant: Konstantinos Theodoridis (Bank of England)

15:30-16:00 Coffee Break in S1 Lounge

Shopping Externalities and Self-Fulfilling Unemployment Fluctuations

Greg Kaplan (Princeton University). With Menzio. Discussant: Pontus Rendahl (University of Cambridge)

17:00 Workshop ends

*This workshop has been funded by the European Research Council Starting Grant 263429.