Florian Huber, Gary Koop, Christian Matthes
arXiv 6 Sep 2026 · Econometrics
arXiv:2609.06827 · PDF · Extracted main text
Heterogeneous-agent New Keynesian (HANK) models characterize how entire cross-sectional distributions respond to structural shocks. Traditional representative-agent models are routinely disciplined by impulse responses from aggregate vector autoregressions (VARs). HANK models have no comparable established empirical benchmark because they make predictions not only about aggregates, but also about distributions of micro-level data. We propose a Bayesian benchmark that jointly models macroeconomic aggregates and several marginal distributions from repeated cross sections, including distributions observed in different surveys. Our approach can use both standard structural VAR identification approaches on macroeconomic aggregates and identification restrictions imposed on micro-level data. The model delivers a joint posterior of the distributional effects of shocks, without the need for household panel data or a separate first-stage density estimate.
appendix boundary found by appendix_command · 58% of the source is main text. Read the extracted text to check this.
The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.
| Reference | Intensity | Mentions | Sections | Main text | |
|---|---|---|---|---|---|
| 1 | Chang M, Chen X, and Schorfheide F (2024) Heterogeneity and aggregate fluctuations | 0.950 | 7 | 4 | 86% |
| 2 | Baumeister C, and Hamilton JD (2018) Inference in structural vector autoregressions when the identifying assumptions are not fully believed: Re-evaluating the role o… | 0.928 | 5 | 3 | 80% |
| 3 | Bayer C, Born B, and Luetticke R (2024) Shocks, Frictions, and Inequality in US Business Cycles | 0.928 | 4 | 3 | 100% |
| 4 | Auclert A (2019) Monetary Policy and the Redistribution Channel | 0.843 | 3 | 3 | 100% |
| 5 | Kaplan G, Moll B, and Violante GL (2018) Monetary Policy According to HANK | 0.843 | 3 | 3 | 100% |
| 6 | Chang M, and Schorfheide F (2026) On the Effects of Monetary Policy Shocks on Income and Consumption Heterogeneity | 0.811 | 4 | 2 | 100% |
| 7 | Auclert A, Bardóczy B, Rognlie M, and Straub L (2021) Using the Sequence-Space Jacobian to Solve and Estimate Heterogeneous-Agent Models | 0.737 | 3 | 2 | 100% |
| 8 | Makalic E, and Schmidt DF (2016) A Simple Sampler for the Horseshoe Estimator | 0.644 | 3 | 2 | 67% |
| 9 | Frühwirth-Schnatter S (2006) Finite Mixture and Markov Switching Models | 0.644 | 2 | 2 | 100% |
| 10 | Auclert A, Rognlie M, and Straub L (2024) The Intertemporal Keynesian Cross | 0.644 | 2 | 2 | 100% |
Showing the top 10 of 60 scored citations.