3

Random Models for the Joint Treatment of Risk and Time Preferences

We propose a tractable framework to estimate risk and time preferences jointly.

Firm Debt Deflation, Household Precautionary Savings, and the Amplification of Aggregate Shocks

Deleveraging shocks that increase household precautionary savings, and uncertainty shocks to firms, interact and amplify each other, even when these same shocks separately have moderate effects on output and employment.