Heterogeneity, financial frictions, and macroeconomic stabilization (C05*)

• Subject Area: Economic Policy, Applied Economics
• Term: since 2022
• Project identifier: Deutsche Forschungsgemeinschaft (DFG) - Project number 326731373

Not all households and firms are equally exposed to the business cycle. Differences in income, wealth and portfolio positions matter because financial markets are imperfect and incomplete. Hence, this heterogeneity can have important repercussions for monetary and fiscal stabilization policies. The project contributes to a better understanding of the effectiveness of such policies and their effects in the cross-section of households and firms.

• DFG Programme: CRC/Transregios
• Subproject of: TRR 224: Economic Perspectives on Societal Challenges: Equality of Opportunity, Market Regulation, and Financial Stability
• Applicant Institution: Universität Mannheim
• Project Heads: Professor Dr. Christian Bayer; Professor Dr. Keith Kuester; Professor Dr. Matthias Meier