A majority of governments around the world unprecedentedly closed schools in response to the COVID-19 pandemic. This paper quantitatively investigates the macroeconomic and distributional consequences of school closures through intergenerational channels in the medium-and long-term. The model...

This paper studies how tax-and-transfer progressivity influences aggregate fluctuations when interacting with household heterogeneity. Using a simple static model of the extensive margin labor supply, we analytically characterize how a degree of progressivity influences differential labor supply...

This paper studies how transfer progressivity influences aggregate fluctuations when interacting with household heterogeneity. Using a simple static model of the extensive margin labor supply, we analytically characterize how transfer progressivity influences differential labor supply responses...

The grid search method has often been used to solve models with default risk because the complexity of the problem prevents the use of more efficient but less general tools. In this paper, we propose an extension of the endogenous grid method for default risk models in which price schedules are...

How do defaults and bankruptcies affect optimal health insurance policy? I answer this question,using a life-cycle model of health investment with an option to default on emergency room(ER) bills and financial debts. I calibrate the model to the U.S. economy and compare the optimalhealth...

Default risk models have been widely employed to assess the ability of households and sovereigns to insure themselves against shocks. Grid search has often been used to solve these models because the complexity of the problem prevents the use of faster but less general methods. In this paper, we...