MACRO: Dr Zhen Huo (Yale University)

This paper studies how, under incomplete information, the interdependence of agents’ actions across different time periods affects economic outcomes. We develop a flexible framework for cross-time and cross-sectional networks and provide a straightforward equilibrium characterization, summarizing the complex intertemporal interactions into a single sufficient statistic. As an application, we examine a HANK-type model, incorporating heterogeneous marginal propensities to consume, income elasticities, and information structures.