1. Introduction and Stylized Facts: Inequality in Macroeconomics

• Guvenen, F. (2011): “Macroeconomics with Heterogeneity: A Practical Guide,” Economic Quarterly, 97(3):255–326.

• Heathcote, J., K. Storesletten, and G. Violante (2009): “Quantitative Macroeconomics with Heterogeneous Households,” Annual Review of Economics, 1:319–354.

• Quadrini, V. and J. Ríos-Rull (2015): “Inequality in Macroeconomics,” Handbook of Income Distribution, Vol. 2B, Ch. 14.

2. A Review of the Neoclassical Growth Model

(a) Welfare Theorems

(b) Recursivity and Dynamic Programming

(c) Uncertainty: Aggregation with Complete Markets and Asset Pricing

• K2, Chapters 3–7

• LS, Chapter 7 (pp. 191–197), Chapters 8, 12, and 13

• SLP, Chapters 5 and 10

3. Partial Equilibrium with Incomplete Markets: Precautionary Saving

• K, Chapters 3 and 4

• LS, Chapter 16

4. Idiosyncratic Shocks and Incomplete Markets: Stationary General Equilibrium

• K, Section 5.1

• LS, Chapter 17

• Aiyagari, R. (1994): “Uninsured Risk and Aggregate Savings,” Quarterly Journal of Economics, 109:659–684.

• Huggett, M. (1993): “The Risk-Free Rate in Heterogeneous-Agent Incomplete-Insurance Economies,” Journal of Economic Dynamics and Control, 17:953–969.

• Dávila, J., J. Hong, P. Krusell, and V. Ríos-Rull (2012): “Constrained Efficiency in the Neoclassical Growth Model with Uninsurable Idiosyncratic Shocks,” Econometrica, 80(6):2431–2467.

• Kaplan, G. and G. Violante (2014): “A Model of the Consumption Response to Fiscal Stimulus Payments,” Econometrica, 82(4):1199–1239.

5. Wealth Distribution

• Huggett, M. (1996): “Wealth Distribution in Life-Cycle Economies,” Journal of Monetary Economics, 38:469–494.

• Castañeda, A., J. Díaz-Giménez, and J. Ríos-Rull (2003): “Accounting for the U.S. Earnings and Wealth Inequality,” Journal of Political Economy, 111(4):818–857.

• De Nardi, M. (2015): “Quantitative Models of Wealth Inequality: A Survey,” NBER Working Paper 21106.

6. Transitions Between Steady States (Policy Evaluation with Idiosyncratic Shocks)

• K, Section 5.3

• Huggett, M. (1997): “The One-Sector Growth Model with Idiosyncratic Shocks: Steady States and Dynamics,” Journal of Monetary Economics, 39(3):385–403.

• Kaymak, B. and M. Poschke (2016): “The Evolution of Wealth Inequality over Half a Century: The Role of Taxes, Transfers and Technology,” Journal of Monetary Economics, 77(3):1–25.

7. Aggregate and Idiosyncratic Uncertainty: Business Cycles with Heterogeneity

• K, Section 5.4

• Krusell, P. and A. Smith (1998): “Income and Wealth Heterogeneity in the Macroeconomy,” Journal of Political Economy, 109(5):867–896.

• Krueger, D., K. Mitman, and F. Perri (2016): “Macroeconomics and Household Heterogeneity,” Handbook of Macroeconomics, 2:843–921.

• Aguirre (2018): “Welfare Effects of Fiscal Procyclicality: Public Insurance with Heterogeneous Agents,” Working Papers, Central Bank of Chile.

• Boppart, T., P. Krusell, and K. Mitman (2018): “Exploiting MIT Shocks in Heterogeneous-Agent Economies: The Impulse Response as a Numerical Derivative,” Journal of Economic Dynamics and Control, 89:68–92.

• Ahn, S., G. Kaplan, B. Moll, T. Winberry, and C. Wolf (2018): “When Inequality Matters for Macro and Macro Matters for Inequality,” NBER Macroeconomics Annual, 32(1):1–75.

• Auclert, A., B. Bardóczy, M. Rognlie, and L. Straub (2021): “Using the Sequence-Space Jacobian to Solve and Estimate Heterogeneous-Agent Models,” Econometrica, 89(5):2375–2408.

8. Models of Heterogeneous Firms and Entrepreneurs

• Clementi, G. and D. Palazzo (2016): “Entry, Exit, Firm Dynamics and Aggregate Fluctuations,” American Economic Journal: Macroeconomics.

• Quadrini, V. (1997): “Entrepreneurship, Saving and Social Mobility,” Review of Economic Dynamics, 3:1–40.

9. Financial Frictions with Heterogeneous Agents

• K2, Chapter 6

• Krueger, D. and F. Perri (2006): “Does Income Inequality Lead to Consumption Inequality? Evidence and Theory,” Review of Economic Studies, 73:163–193.

• Zhang, H. (1997): “Endogenous Borrowing Constraints with Incomplete Markets,” Journal of Finance, 52(5):2187–2209.

• Aguirre, A. (2014): “Contracting Institutions and Economic Growth,” Review of Economic Dynamics, 24:192–217.

• Livshits, I., J. MacGee, and M. Tertilt (2007): “Consumer Bankruptcy: A Fresh Start,” American Economic Review, 97(1):402–418.

10. Labor Market Frictions: Search Models with Precautionary Saving

• Krusell, P., T. Mukoyama, and A. Şahin (2010): “Labour-Market Matching with Precautionary Savings and Aggregate Fluctuations,” Review of Economic Studies, 77(4):1477–1507.

• Nakajima, M. (2012): “Business Cycles in the Equilibrium Model of Labor Market Search and Self-Insurance,” International Economic Review, 53(2):399–432.

• Nakajima, M. (2012): “A Quantitative Analysis of Unemployment Benefit Extensions,” Journal of Monetary Economics, 59(7):686–702.

11. Continuous-Time Methods

• Achdou, Y., J. Han, J.-M. Lasry, P.-L. Lions, and B. Moll (2021): “Income and Wealth Distribution in Macroeconomics: A Continuous-Time Approach,” Review of Economic Studies.

12. Nominal Rigidities: Monetary Policy with Heterogeneous Agents

• Gornemann, N., K. Kuester, and M. Nakajima (2016): “Doves for the Rich, Hawks for the Poor? Distributional Consequences of Monetary Policy,” mimeo.

• Kaplan, G., B. Moll, and G. Violante (2018): “Monetary Policy According to HANK,” American Economic Review, 108(3):697–743.

• McKay, A. and C. Wolf (2023): “Monetary Policy and Inequality,” Journal of Economic Perspectives, 37(1):121–144.

13. Political Equilibrium with Idiosyncratic Shocks

• Krusell, P. and V. Ríos-Rull (1999): “On the Size of U.S. Government: Political Economy in the Neoclassical Growth Model,” American Economic Review, 89(5):1156–1181.

• Corbae, D., P. D’Erasmo, and B. Kuruscu (2009): “Politico-Economic Consequences of Rising Wage Inequality,” Journal of Monetary Economics, 56(1):43–61.

• Bachmann, R. and J. H. Bai (2013): “Politico-Economic Inequality and the Comovement of Government Purchases,” Review of Economic Dynamics, 16(4):565–580.

• Aguirre, A. (2025): “Macro Implications of Inequality-Driven Political Polarization,” Working Papers, Central Bank of Chile.