About the project
The project takes seriously the well documented huge heterogeneity which characterizes workers and firms but has been largely ignored by the macroeconomics literature. Within this framework we will provide new answers to several classic questions in macroeconomics, economic growth and labor economics:
Does the market allocate the right workers to the right firms? Are complementarities between workers and firms important in determining output, productivity, and wages? What are the sources of observed wage differentials across industries and firms and between males and females?
Objectives
Primary Objective
The primary objective of the project is to Identify and measure the technology which transforms unobserved worker ability and unobserved firm productivity into output for various countries (Denmark, Germany and Norway).
Secondary Objective
The secondary objective of the project is to use the identified technology to answer several substantive questions including the optimal allocation of workers to firms, the output loss from frictions and the sources of wage inequality. The research will also contribute to business cycle theory, international trade and labor economics.
Previous events
2019: Advances in Micro-Consistent Macroeconomics
Time and place: Feb. 25, 2019 – Mar. 1, 2019, Scandic Lillehammer Hotel
Department of Economics, the University of Oslo, in collaboration with the IIES and the Monetary Economics and Fluctuations Group of the Centre for Economic Policy Research, will host a conference on "Advances in Micro-Consistent Macroeconomics" in Lillehammer, Norway.
The aim of the conference is to bring together researchers to answer macroeconomic questions using micro-consistent models -micro-founded models informed by micro data. Research focusing on heterogeneity in households and firms and the interplay of the heterogeneity with aggregate fluctuations and macroeconomic policy is especially welcome. We will also consider macro topics more broadly, including growth, labor, and policy topics.
Programme
Tuesday February 26th
- 16.30-17.30 “Concentration in U.S. local labor markets: evidence from vacancy and employment data”
- Speaker: Claudia Macaluso
- Co-authors: Brad Hershbein and Chen Yeh
- 17.45-18.45 “Shock and Frictions in Business Cycles with Heterogeneous Agents”
- Speaker: Christian Bayer
- Co-authors: Benjamin Born and Ralph Luetticke
- 19.00 Dinner
- 20.30-21.30 “Flexibility and Productivity”
- Speaker: Rasmus Lentz
- Co-authors: Suphanit Piyapromdee and Jean-Marc Robin
Wednesday February 27th
- 9.00-10.00 “Coulpes' Time-Use and Aggregate Outcomes: Evidence from a Structural Model”
- Speaker: Monika Merz
- Co-authors: Almut Balleer and Tamás K. Papp
- 10.15-11.30 “Quantitative Easing”
- Speaker: Vincent Sterk
- Co-author: Wei Cui
- 11.45-12.45 “Accounting for Heterogeneity”
- Speaker: Luigi Bocola
- Co-authors: David Berger and Alessandro Dovis
- 13.00 – 14.00 Lunch
- 14.00-15.00 “Higher-Order Income Risk over the Business Cycle: A Parametric Approach”
- Speaker: Christopher Busch
- Co-author: Alexander Ludwig
- 15.15-16.15 “The Welfare Cost of Inflation Revisited: The Role of Financial Innovation and Household Heterogeneity”
- Speaker: Yasuo Terajima
- Co-authors: Shatao Cao, Césaire A. Meh and José Víctor Ríos-Rull
- 16.30-17.30 “What is the Impact of Increased Business Competition?”
- Speaker: Chiara Maggi
- Co-author: Sónia Félix
- 19.00 Dinner
- 20.30-21-30 Aggregate Demand, Markups and Labor Market Inequality
- Speaker: Greg Kaplan
- Co-author: Piotr Zoch
Thursday February 28th
- 9.00-10.00 “Solving discrete time heterogeneous agent models with aggregate risk and many idiosyncratic states by perturbation”
- Speaker: Ralph Luetticke
- Co-author: Christian Bayer
- 10.15-11.30 “Creditless Booms, Tangible Assets and Banks: Evidence from German Disaggregated Data”
- Speaker: Alessandro Rebucci
- Co-authors: Peter Bednarek, Daniel Marcel te Kaat and Chang Ma
- 11.45-12.45 “A theory of falling growth and rising rents”
- Speaker: Timo Boppart
- Co-authors: Philippe Aghion, Antonin Bergeaud, Peter J. Klenow and Huiyu Li
- 13.00 – 14.00 Lunch
- 14.30-15.30 “Monetary Policy and Heterogeneity: An Analytical Framework”
- Speaker: Florin O. Bilbiie
- 15.45-16.45 “The Impact of Unemployment Benefit Extensions on Employment: The 2014 Employment Miracle?“
- Speaker: Iourii Manovskii
- Co-authors: Marcus Hagedorn and Kurt Mitman
- 18.30 Conference Dinner
- 20.30-21.30 “Sovereign Debt and Structural Reforms”
- Speaker: Fabrizio Zilibotti
- Co-authors: Andreas Müller and Kjetil Storesletten
Friday March 1st
- 8.30-9.30 “Saving Behavior across the Wealth Distribution”
- Speaker: Gisle Natvik
- 9.45-10.45 “Mortgage Prepayment and Path-Dependent Effects of Monetary Policy”
- Speaker: Fabrice Tourre
- Co-authors: David Berger, Konstantin Milbrandt and Joseph Vavra
- 11.00-12.00 “Taxes, Private Equity, and Evolution of Income Inequality in the US”
- Speaker: Sebastian Dyrda
- Co-author: Benjamin Pugsley
- 12.00: Lunch and adjourn
