Jonathan Heathcote's Research Page

Working Papers

Quits and Optimal Unemployment Insurance (new version)
with Zhifeng Cai (Rutgers)
November 2025 (first version March 2023) PAPER SLIDES
Reconciling Macroeconomics and Finance for the U.S. Corporate Sector: 1929 - Present
with Andrew Atkeson (UCLA) and Fabrizio Perri (Minneapolis Fed)
February 2025 (first version June 2024) PAPER SLIDES
Fiscal Progressivity of the U.S. Federal and State Governments (new version)
with Johannes Fleck (Federal Reserve Board), Kjetil Storesletten (Minnesota) and Gianluca Violante (Princeton)
November 2025 (first version January 2025) PAPER SLIDES
What Drives the Stock Market? (paper coming soon)
with Andrew Atkeson (UCLA) and Fabrizio Perri (Minneapolis Fed)
May 2025 SLIDES
There Is No Excess Volatility Puzzle
with Andrew Atkeson (UCLA) and Fabrizio Perri (Minneapolis Fed)
August 2024 (first version May 2024) PAPER
Economist Article
Practical Optimal Income Taxation (new version coming soon)
with Hitoshi Tsujiyama (Surrey)
January 2025 (first version June 2021) PAPER

Publications

The End of Privilege: A Reexamination of the Net Foreign Asset Position of the United States
with Andrew Atkeson and Fabrizio Perri
American Economic Review July 2025, 115/7, p. 2151–2206
PAPER APPENDIX SLIDES
More Unequal We Stand? Inequality Dynamics in the United States 1967--2021
with Fabrizio Perri (Minneapolis Fed), Gianluca Violante (Princeton), and Lichen Zhang (University of Hong Kong)
Review of Economic Dynamics 2023, 50, p.235-266
PAPER SLIDES
Health versus Wealth: On the Distributional Effects of Controlling a Pandemic
with Andrew Glover, Dirk Krueger, and Jose-Victor Rios-Rull
Journal of Monetary Economics 2023, 140, p.34-59
PAPER SLIDES
NYT article Reuters Bloomberg VoxEU
Optimal Age-Based Vaccination and Economic Mitigation Policies for the Second Phase of the Covid-19 Pandemic
with Andrew Glover and Dirk Krueger
Journal of Economic Dynamics and Control July 2022, 140
PAPER
College Tuition and Income Inequality
with Zhifeng Cai (Rutgers)
American Economic Review January 2022, 112/1, p.81-121
PAPER SLIDES APPENDIX
Optimal Income Taxation: Mirrlees Meets Ramsey
with Hitoshi Tsujiyama (Surrey)
Journal of Political Economy November 2021, 129/11, p.3141-3184
PAPER SLIDES
How Should Tax Progressivity Respond to Rising Income Inequality?
with Kjetil Storesletten (Minnesota) and Gianluca Violante
Journal of the European Economic Association December 2020, 18/6 p.2715-2754
PAPER
The Rise of US Earnings Inequality: Does the Cycle Drive the Trend?
with Fabrizio Perri and Gianluca Violante
Review of Economic Dynamics August 2020, 37/1 p.181-204
PAPER SLIDES
WSJ article
Intergenerational Redistribution in the Great Recession
with Andrew Glover (FRB Kansas City), Dirk Krueger (Penn), and Jose-Victor Rios-Rull (Penn)
Journal of Political Economy October 2020, 128/10, p.3730-3778
PAPER SLIDES
Optimal Progressivity with Age-Dependent Taxation
with Kjetil Storesletten and Gianluca Violante
Journal of Public Economics September 2020, 189.
PAPER SLIDES
Wealth and Volatility
with Fabrizio Perri
Review of Economic Studies October 2018, 85/4, p.2139-2172.
PAPER ABSTRACT SLIDES
Optimal Tax Progressivity: An Analytical Framework
with Kjetil Storesletten and Gianluca Violante
Quarterly Journal of Economics November 2017, 132/4, p.1693-1754.
PAPER ABSTRACT SLIDES
Originally titled Redistributive Taxation in a Partial-Insurance Economy
The Macroeconomics of the Quiet Revolution: Understanding the Implications of the Rise in Women's Participation for Economic Growth and Inequality
with Kjetil Storesletten and Gianluca Violante
Research in Economics September 2017, 71/3, p.521-539.
PAPER
On the Desirability of Capital Controls
with Fabrizio Perri
IMF Economic Review May 2016, 64/1, p.75-102.
PAPER ABSTRACT SLIDES
Assessing International Efficiency
with Fabrizio Perri
Handbook of International Economics Vol. 4 Chapter 9, p. 523-584
PAPER ABSTRACT
Consumption and Labor Supply with Partial Insurance: An Analytical Framework
with Kjetil Storesletten and Gianluca Violante
American Economic Review July 2014, 104/7, p. 2075-2126
PAPER ABSTRACT Technical APPENDIX
This material is based upon work supported by the National Science Foundation under Grant No. 0418060.
The International Diversification Puzzle is Not as Bad as You Think
with Fabrizio Perri
Journal of Political Economy December 2013, 121/6, p. 1108-1159
PAPER ABSTRACT
From Wages to Welfare: Decomposing Gains and Losses from Rising Inequality
with Kjetil Storesletten and Gianluca Violante
Advances in Economics and Econometrics: Theory and Applications 2013, Tenth World Congress, Econometric Society Vol. 2, pp 235-282
PAPER ABSTRACT SLIDES
The Macroeconomic Implications of Rising Wage Inequality in the United States
with Kjetil Storesletten and Gianluca Violante
Journal of Political Economy August 2010, 118/4, p. 681-722
PAPER ABSTRACT
older longer version as CEPR Working Paper Long Version
This material is based upon work supported by the National Science Foundation under Grant No. 0418060.
Unequal We Stand: An Empirical Analysis of Economic Inequality in the United States, 1967-2006
with Fabrizio Perri and Gianluca Violante
Review of Economic Dynamics January 2010, 13/1, p. 15-51
PAPER ABSTRACT
This material is based upon work supported by the National Science Foundation under Grant No. 0418060.
Dollarization and Financial Integration
with Cristina Arellano (FRB Minneapolis)
Journal of Economic Theory May 2010, 145/3, p. 944-973
PAPER ABSTRACT
also available as CEPR Discussion Paper 6116 and FRB Minneapolis Staff Report 385
Quantitative Macroeconomics with Heterogeneous Households
with Kjetil Storesletten and Gianluca Violante
Annual Review of Economics 2009, 1, p. 319-354
PAPER ABSTRACT
This material is based upon work supported by the National Science Foundation under Grant No. 0418060.
Discussion of "Heterogeneous life-cycle profiles, income risk and consumption inequality" by Giorgio Primiceri and Thijs van Rens
Journal of Monetary Economics January 2009, 56/1, p. 40-42
Carnegie-Rochester Discussion
Insurance and Opportunities: The Welfare Implications of Rising Wage Dispersion
with Kjetil Storesletten and Gianluca Violante
Journal of Monetary Economics April 2008, 55/3, p. 501-525
PAPER ABSTRACT LONG VERSION
This material is based upon work supported by the National Science Foundation under Grant No. 0418060.
The Price and Quantity of Residential Land in the United States
with Morris Davis (Rutgers)
Journal of Monetary Economics November 2007, 54/8, p. 2595-2620
PAPER Data Appendix ABSTRACT
Older version as Federal Reserve Board Finance and Economics Discussion Series, 2004-37
article discussed by Associated Press, Reuters, Bloomberg News, and in many media outlets including Wall Street Journal, USA Today, MSNBC, ABC News, Forbes
This material is based upon work supported by the National Science Foundation under Grant No. 0301119.
Housing and the Business Cycle
with Morris Davis
International Economic Review August 2005, 46/3, p. 751-784
PAPER Data Data Appendix ABSTRACT
This material is based upon work supported by the National Science Foundation under Grant No. 0301119.
Two Views of Inequality Over the Life-Cycle
with Kjetil Storesletten and Gianluca Violante
Journal of the European Economic Association April-May 2005, 3/2-3, p. 765-775
PAPER ABSTRACT
This material is based upon work supported by the National Science Foundation under Grant No. 0418060.
Fiscal Policy with Heterogeneous Agents and Incomplete Markets
Review of Economic Studies January 2005, 72, p. 161-188
PAPER technical appendix ABSTRACT
older version of paper August 1999 Fiscal Policy (old) PAPER ABSTRACT
Financial Globalization and Real Regionalization
with Fabrizio Perri
Journal of Economic Theory November 2004, 119/1, p. 207-243
PAPER ABSTRACT
On the Distributional Effects of Reducing Capital Taxes (previously: Factor Taxation with Heterogeneous Agents)
with David Domeij (Stockholm School of Economics)
International Economic Review May 2004, 45/2, p. 523-554
PAPER ABSTRACT
Why Has the US Economy become Less Correlated with the Rest of the World?
with Fabrizio Perri
American Economic Review Papers and Proceedings May 2003, 93/2, p. 63-69
PAPER ABSTRACT
Financial Autarky and International Real Business Cycles
with Fabrizio Perri
Journal of Monetary Economics April 2002, 49/3, p. 601-627
PAPER ABSTRACT

Older Papers

Home Production and Retirement
posted version May 2002: first version May 2002 Home Production and Retirement PAPER
This material is based upon work supported by the National Science Foundation under Grant No. 0301119.
Interest Rates in a General Equilibrium Baumol-Tobin Model
posted version June 1998: first version July 1996 Baumol Tobin PAPER ABSTRACT