3

Macro Theory with Measured Expectation
The Lucas critique holds that policy evaluations based on historical correlations can fail because policy changes alter expectation …
Ralph Luetticke, Christopher Roth, Mirko Wiederholt, Johannes Wohlfart
Posted Mar 11, 2026
Cite CEPR DP21554 Ungated
The Military Multiplier
How effectively does defense spending translate into military capability? We introduce the military multiplier, defined as the …
Anastasiia Antonova, Ralph Luetticke, Gernot Müller
Posted Mar 11, 2026
Cite CEPR DP20220 Ungated Presentation
Unconventional but Different After All? A Unified Series of Narrative Monetary Policy Shocks
We construct a unified series of narrative monetary policy shocks for the U.S. that spans both conventional and unconventional policy …
David Bügel, Albert Hidalgo, Ralph Luetticke
Posted Mar 10, 2026
Cite CEPR DP19163 Ungated Code for Shock Series
Financial Frictions: Macro vs Micro Volatility
We argue that consumer credit spreads matter materially for household choices and that time-varying spreads have important …
Renato Faccini, Seungcheol Lee, Ralph Luetticke, Morten Ravn, Tobias Renkin
Cite New version Old version
Inequality, Informality, and Optimal Progressivity
How should governments design progressive labor-income taxes when workers can shift labor supply into untaxed informal work? Using …
Oscar Becerra, Luigi-Maria Briglia, John Le’on-D’iaz, Oscar Valencia, Ralph Luetticke
Posted Feb 18, 2026
Cite CEPR DP21229 Ungated
A Temporary VAT Cut as Unconventional Fiscal Policy
We exploit Germany’s temporary three-percentage-point VAT cut in the second half of 2020 to study the spending response to …
Rüdiger Bachmann, Benjamin Born, Olga Goldfayn-Frank, Georgi Kocharkov, Ralph Luetticke, Michael Weber
Cite Ungated Feature @ BFI VoxEU
An Endogenous Gridpoint Method for Distributional Dynamics
Modeling continuous choices in heterogeneous agent models as ``lotteries’’ over a discretized state space is standard …
Christian Bayer, Ralph Luetticke, Maximilian Weiss, Yannik Winkelmann
Cite CEPR DP19067 Ungated Code
The Great Leveler according to HANK
Using historical income and wealth data, we show that war reduces inequality: the top-1% income share falls by 20% and the top-1% …
Ralph Luetticke, Timothy Meyer, Gernot Müller, Moritz Schularick
Posted Nov 19, 2025
Cite Ungated
HANK's Response to Aggregate Uncertainty in an Estimated Business Cycle Model
This paper studies a HANK model with agents who respond to both idiosyncratic and aggregate uncertainty. Since aggregate uncertainty is …
Cosmin Ilut, Ralph Luetticke, Martin Schneider
Posted Dec 24, 2024
Cite NBER WP Ungated
Shocks, Frictions, and Inequality in US Business Cycles
We show how a heterogeneous-agent New-Keynesian (HANK) model with incomplete markets and portfolio choice can be estimated in state …
Christian Bayer, Benjamin Born, Ralph Luetticke
Cite Code CEPR DP14364 Ungated VoxEU