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Articles by Kurt Mitman
Economics and Epidemics: Evidence from an Estimated Spatial Econ-SIR Model
October 2020 Economics and Epidemics: Evidence from an Estimated Spatial Econ-SIR Model Mark Bognanni, Doug Hanley, Daniel Kolliner, Kurt Mitman Abstract: Economic analysis of effective policies for managing epidemics requires an integrated economic and epidemiological approach. We develop and estimate a spatial, micro-founded model of the joint evolution of economic variables and the spread of an epidemic.
The Housing Boom and Bust: Model Meets Evidence
We build a model of the US economy with multiple aggregate shocks that generate fluctuations in equilibrium house prices. Through counterfactual experiments, we study the housing boom-bust around the Great Recession, with three main results. First, the main driver of movements in house prices and rents was a shift in beliefs, not a change in credit conditions. Second, the boom-bust in house prices explains half of the corresponding swings in nondurable expenditures through a wealth effect.
Corona policy according to HANK
Heterogeneous-Agent New Keynesian models offer new perspectives on fiscal and monetary policy interaction in the euro area. The current question is whether ECB measures are predominantly motivated to ensure price stability (with fiscal consequences a side effect), or whether they are motivated by an overriding economic policy objective. This column presents evidence that, according to the HANK models, there is no distinct separation between fiscal and monetary policy.
Inequality made the Great Recession worse (especially for the poor) | VOX, CEPR's Policy Portal
Previous research found that income and wealth inequality had little impact on the aggregate dynamics of consumption, investment and output. This reinforced the idea that we can study downturns in the economy using representative agents. This column argues that household inequality affects both the depth of a recession and the welfare losses of those affected by it.
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