Assistant Professor of Economics

Department of Economics

University College London

Biography

Ralph Luetticke is an Assistant Professor of Economics at UCL and affiliated with CEPR and CfM.

Full CV.

Interests

  • Business Cycles
  • Computational Methods
  • Financial Frictions
  • Fiscal and Monetary Policy

Education

  • PhD in Economics, 2016

    University of Bonn, Germany

  • MSc in Economics, 2014

    University of Bonn, Germany

  • BSc in International Economics, 2010

    University of Maastricht, The Netherlands

Current Work

(2021). The Liquidity Channel of Fiscal Policy.

CEPR DP14883-2 Ungated

(2020). Financial Frictions: Macro vs Micro Volatility.

CEPR DP15133 Ungated

(2020). The Coronavirus Stimulus Package: How large is the transfer multiplier?. Economic Journal, r&r.

CEPR DP14600 Ungated VoxEU

(2020). Shocks, Frictions, and Inequality in US Business Cycles. American Economic Review, r&r.

Code CEPR DP14364 Ungated VoxEU

Publications

(2021). Transmission of Monetary Policy with Heterogeneity in Household Portfolios. American Economic Journal: Macroeconomics, 13 (2): 1-25.

Published Version Ungated

(2020). Solving heterogeneous agent models in discrete time with many idiosyncratic states by perturbation methods. Quantitative Economics, 11, pp. 1253-1288.

Presentation Ungated Codes

(2020). Comment on 'The Household Channel of Monetary Policy in the Euro Area: A Back of the Envelope Calculation'. Journal of Economic Dynamics and Control, 115, 103880.

Published Version Ungated

(2019). Precautionary Savings, Illiquid Assets, and the Aggregate Consequences of Shocks to Household Income Risk. Econometrica, 87, pp. 255-290.

Published Version Ungated

Code

Perturbation Methods for Heterogeneous Agent Models

The following lecture is a short-course on how to use perturbation methods to solve heterogeneous agent models.

Download slides.

You can find the codes to implement this on GitHub:

Comparison of Perturbation vs MIT shock solution for Krusell-Smith model (Matlab) https://github.com/ralphluet/KS_Perturbation_vs_MIT

Perturbation solution with our reduction method for Krusell-Smith and HANK models (Matlab) https://github.com/ralphluet/perturbation_codes

Perturbation solution with our reduction method for HANK models (Python) https://github.com/econ-ark/BayerLuetticke

Perturbation solution with our reduction method for estimating HANK models (Julia) https://github.com/BenjaminBorn/HANK_BusinessCycleAndInequality

Data

Income Risk

We use the Survey of Income and Program Participation to estimate a household income process with time-varying variance of persistent income shocks (1980-2012). See Bayer, Luetticke, Pham-Dao, Tjaden (2019) for details.

Download data.

Inequality

Our structural model in Bayer, Born, Luetticke (2020) allows us to generate a quarterly time series for US inequality from 1954-2019. The model replicates the annual observations on the US top 10% wealth and income shares from the World Inequality Database, and we can use the Kalman smoother to create a quarterly time series (done with the HANKXPlus model).

Download data.

Tax Progressivity

Annual and quarterly measure of tax progressivity in the US, 1954-2019. In Bayer, Born, Luetticke (2020) we first extend the Mertens and Montiel Olea (2018)-calculations of average (ATR) and average marginal tax rates (AMTR) to the years 2013-2017 and with these calculate tax progressivity as in Ferriere and Navarro (2018) using the average and average marginal tax rate: P = (AMTR - ATR)/(1 - ATR). This provides us with annual observations for the estimation of our HANK model, and we can use the Kalman smoother to create a quarterly time series (done with the HANKXPlus model).

Download quarterly data.

Download annual observations.

Replication code: https://github.com/ralphluet/Tax-Progressivity-Construction

Teaching

Autumn 2021

  • Macroeconomics (MRes)
  • Economic Policy Analysis (BSc)

Past Teaching

Macroeconomics and Computational Methods at all levels.

Thesis Supervision

I supervise theses in the area of macroeconomics. To apply for supervision, please email me an up-to-date transcript, a short CV, and a rough description of what you are interested in.

Contact

  • 30 Gordon Street, London, WC1H 0AX
  • Upon appointment via email