Eustache Elina
PhD candidate at PSE

I am a 4th year PhD candidate in the Macroeconomics department of the Paris School of Economics under the supervision of Professors Tobias Broer and Axelle Ferriere. My resume is available here.

My research focuses on the interactions between distributions and macroeconomic aggregates. 

Research

Joint with Raphaël Huleux (JMP)

The past 40 years have been characterized by a decrease in the rate of return on safe assets, an increase in the equity premium, an increase in the price of financial assets, and an increase in labor income and wealth inequality. Using a heterogeneous-agent model featuring permanent labor income inequality, a two-asset structure, and non-homothetic preferences, we investigate the impact of an increase in permanent labor income inequality on wealth inequality. As rich households save a higher share of their permanent income than poorer ones, a more skewed permanent labor income distribution increases aggregate savings. With imperfect competition, a higher level of savings leads to a higher valuation of firms and a limited increase in capital stock. The induced capital gains increase wealth inequality due to portfolio heterogeneity.


Joint with Léonard Bocquet and Raphaël Huleux

We study the impact of an increase in permanent labor income inequality on the transmission of monetary shocks on the real economy. Using a Two-Agent New Keynesian model with non-homothetic preferences, we show that an increase in permanent labor income inequality weakens the direct intertemporal substitution channels, decreasing the strength of monetary policy shocks. In a more realistic Heterogeneous-Agent New-Keynesian model featuring a non-degenerate wealth distribution, this increase in labor income inequality also increases the share of hand-to-mouth households, strengthening the indirect effect of monetary policy and potentially overcoming the decrease of the direct effect.


Teaching

PSE, M2 APE with Professors Axelle Ferriere and Tobias Broer

PSE, M1 APE with Professor Gilles Saint-Paul

PSE, M1 APE with Professor Daniel Cohen

PSE, M1 PPD with Thomas Zuber

ESCP, Grande Ecole, L3

ESCP, Grande Ecole, L3

ESCP, BSc Program, L1 with Professor Vanessa Strauss-Kahn


Lecture notes