I-HANK: The international Heterogeneous-agent New Keynesian Model

Why are booms and busts in economic activity so closely connected across countries? While this question is crucial for designing stabilization policies, it has challenged international macroeconomists for decades. An emerging literature studies business cycles through the lens of macroeconomic models featuring heterogeneity in income and wealth levels across households. Such Heterogeneous-Agent New Keynesian (HANK) models establish a link between distributional issues and macroeconomic outcomes. With very few exceptions, however, the existing literature has focused on models of closed economies. The aim of this project is to develop an International HANK model (I-HANK), and investigate the hypothesis that such a model can explain the international co-movement of business cycles.







Name Title Job responsibilities Image
Søren Hove Ravn Associate Professor Macroeconomics; Monetary and Fiscal Policy; Interactions between Financial Markets and the Macroeconomy; Macroeconometrics; Macroeconomic Modeling Billede af Søren Hove Ravn

Funded by:

Logo: The Carlsberg Foundation

I-HANK: The international Heterogeneous-agent New Keynesian Model receives a three year financing from the Carlsberg Foundation.

Period:  August 2021 - August 2024


Principal investigator Søren Hove Ravn