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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
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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
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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
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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
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The Military Multiplier
What determines the effectiveness of military buildups? We introduce the concept of the military multiplier: the percentage increase in …
Anastasiia Antonova, Ralph Luetticke, Gernot Müller
Posted May 9, 2025
Cite CEPR DP20220 Ungated Presentation
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
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Unconventional Monetary Policy Shocks and their Distributional Implications
We identify a novel series of unconventional monetary policy shocks for the U.S. by combining Romer and Romer’s narrative …
David Bügel, Albert Hidalgo, Ralph Luetticke
Posted Jun 14, 2024
Cite CEPR DP19163 Ungated Code
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
Unconventional Fiscal Policy at Work
In an effort to stabilize the economy during the Covid-19 pandemic, the German government reduced value added taxes (VAT) by three …
Rüdiger Bachmann, Benjamin Born, Olga Goldfayn-Frank, Georgi Kocharkov, Ralph Luetticke, Michael Weber
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