Shaping inequality: Unraveling responses to aggregate macro shocks in a heterogeneous agent model for Colombia
How important are macroeconomic shocks in explaining inequality dynamics in the context of a heterogeneous agent model for Colombia? In this paper, I calibrate a small open economy model with rich household heterogeneity, incomplete markets, and monetary policy for Colombia. I show that extending a...
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| Tipo de recurso: | tesis de maestría |
| Estado: | Versión aceptada para publicación |
| Fecha de publicación: | 2023 |
| País: | Colombia |
| Institución: | Universidad de los Andes |
| Repositorio: | Séneca: repositorio Uniandes |
| Idioma: | inglés |
| OAI Identifier: | oai:repositorio.uniandes.edu.co:1992/73172 |
| Acceso en línea: | https://hdl.handle.net/1992/73172 |
| Access Level: | acceso abierto |
| Palabra clave: | Heterogeneity Income and wealth inequality Monetary policy Calibration Aggregate shocks Economía |
| Sumario: | How important are macroeconomic shocks in explaining inequality dynamics in the context of a heterogeneous agent model for Colombia? In this paper, I calibrate a small open economy model with rich household heterogeneity, incomplete markets, and monetary policy for Colombia. I show that extending a New Keynesian model structure to include household heterogeneity allows to analyze both the quantitative and qualitative responses of inequality measures (such as Gini coefficients and Top10 shares) to aggregate shocks in the Colombian economy. I find that, given the model structure, in the short run, consumption Gini variation is explained in 60% by the aggregate savings shock, corresponding to the household’s portfolio adjustment decision, and that the model is competent to replicate the direction of the response of Gini variables to a contractionary monetary policy shock. |
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