Russia's invasion of Ukraine has prompted Denmark and other European countries to significantly boost their military spending. A scenario analysis suggests that meeting the new NATO target of 3.5 per cent of GDP in core defence spending from 2026 onwards may add moderately to capacity pressures...

This Ph.D. thesis consists of four self-contained chapters, which all investigate macroeconomic questions from a micro perspective: through structural models with either full distributional heterogeneity or approximations thereof, and in one case, through microdata. In addition, all projects are...