Giovanni L. Violante’s research while affiliated with Princeton University and other places

... Papers such as Heathcote, Perri, and Violante (2010), Heathcote, Perri, and Violante (2020) and Heathcote, Perri, Violante, and Zhang (2023) have approached the complex and vast question of documenting the inequality's evolution over the past decades. When focusing on wage inequality, they distinguish between inequality at the bottom of the distribution and 5 For a list of earlier papers, see his literature review. ...

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Labor Markets, Wage Inequality, and Hiring Selection *

... between unemployed and employed households. Kaplan and Violante (2022) investigate how models of MPC heterogeneity explain the wide range of responses to income fluctuations, especially among "hand-to-mouth" households. Aguiar, Bils, and Boar (2024) extend the model of Kaplan and Violante but allowing heterogenous preferences in their model, shows that preferences predominantly explain the higher MPCs for low-asset households. ...

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The Heterogeneous Response of Consumption to Income Shocks: Semi-structural and Quasi-experimental Estimates from India

... The economic crisis further exacerbated their vulnerabilities, making recovery difficult. Moreover, the global income disparity had widened [65], leading to significant differences in the combinations of inputs and outputs related to EE, resulting in a lack of noticeable improvement in relative efficiency, indirectly contributing to a decline in EE. ...

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Towards sustainability: Evaluating energy efficiency with a super-efficiency SBM-DEA model across 168 economies

... In the ensuing exposition, we meticulously engineer a utility function encapsulating constant relative risk aversion (CRRA) to portray the preferences of such a household. The CRRA utility function, extensively employed in modern economics, represents a category of utility functions that manifest risk aversion in decision making, with the degree of risk aversion remaining invariant across varying levels of wealth [21]. In the following form, we construct the constant relative risk aversion utility function: where U indicates the constant relative risk aversion utility function; E indicates the expectation operator; β indicates the discount factor; C indicates the non-oil consumer goods; EC indicates the oil-based consumer goods; α indicates the weighted value between non-oil consumer goods and oil-based consumer goods; σ indicates the relative risk aversion elasticity of consumption; L indicates the labor; n indicates the reciprocal elasticity of labor supply; and µ indicates the weighted value of labor relative to consumption. ...

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Unraveling the COVID-19 Pandemic’s Impact on South Korea’s Macroeconomy: Unearthing Novel Transmission Channels within the Energy Sector and Production Technologies

... The appearance of Superstar firms could also be observed through the lens of regulatory policy dynamics (Bilal et al., 2022). The changing regulatory policy and antitrust directives play a vital role in the emergence of star firms (Lotti and Sette, 2019). ...

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Understanding superstar firms’ phenomenon

... As reviewed in Section 2.3, the literature has suggested that the differences between the TSTSLS IGE and the OLS IGE can be reconciled through the use of an exogenous instrument in the first stage of the TSTSLS estimation. For example, Acciari et al. (2022) recently use linked administrative data for Italy and find that the TSTSLS IGE estimate is more than double the OLS IGE estimate. They suggest that the key challenge in TSTSLS estimation is "finding a valid instrument, one that predicts parental income but remains orthogonal to child income" (Acciari et al. 2022, p. 137). ...

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The two-sample two-stage least squares method to estimate the intergenerational earnings elasticity

... 5 Housing is also important because it is 3 The role that income uncertainty plays in shaping the consumption-savings decisions of households has been one of the primary areas of study in macroeconomics during the past 30 years. Prominent examples include: Zeldes (1989), Deaton (1991), Aiyagari (1994), Carroll and Kimball (2001), Castañeda et al. (2003) 4 See for example , Kaplan et al. (2016), Lütticke (2017) 5 In the 2016 Survey of Consumer Finance (SCF) the median net housing holdings was $25,000. The median net worth holdings was $48,360 financed by long term debt obligations, which leverage a household's illiquid asset position and can make them sensitive to changes in house prices. ...

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Essays in Macroeconomics and the Role of Household Heterogeneity in the Great Recession

... Third, the midpoint is used to Fig. 1 The theoretical framework 4 See a summary of the methodological challenge of measuring the educational mobility in Van der Weide et al. (2023). 5 Rank-rank estimation is first adopted in income mobility and is proved to be more stable and less affected by transitory fluctuations (Acciari et al., 2022;Chetty et al., 2014;Dahl & DeLeire, 2008;Mazumder, 2016). Ideally, similar procedures should be applied to estimation of educational mobility. ...

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Unveiling the Neighborhood Effect on Intergenerational Mobility: Which Scale is More Relevant?

... For Ampudia et al. (2018), standard and non-standard monetary policy had distributional effects, both a reduction in policy interest rates and the Asset Purchase Program compressing the distribution of income. The authors isolated direct from indirect effects of monetary policy transmission channels, in which direct effects comprise changes in household incentives and net financial income, and indirect effects include the response of prices and wages. ...

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House prices and credit as transmission channels from monetary policy to inequality: Evidence from OECD countries

... This resulted in interest rates dropping to historical lows, liquidity existing theories have necessitated changes and adjustments within mainstream economics. The heterogeneous agent new Keynesian economics (HANK) has garnered significant attention (Ahn et al., 2018;Kaplan et al., 2018;Alves et al., 2020). Unlike the representative agent new Keynesian economics (RANK), HANK deviates from the homogeneous representative agent assumption. ...

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Interest-bearing capital and monetary policy: a heterogeneous agent Marxian model