Thesis on Macroeconomics

This thesis consists of three chapters. In Chapter 1, I study the redistribution channels in heterogeneous-agent New Keynesian (HANK) models. Following a monetary policy shock, this paper analytically characterizes the redistribution channels triggered by the shock and quantitatively assesses each channel's effects. The redistribution effects amplify the responses of output and consumption and dampen the response of investment and real interest rates. On impact, redistribution effects account for 28\% of consumption response and 6\% of output response. All redistribution channels contribute to amplification. When considering their impact magnitude, the channels are ranked in terms of importance as follows: interest rate exposure, income exposure, liquidity, tax exposure, and asset price. In Chapter 2, I study how the heterogeneity in marginal propensities to earn (MPE) affects output's response to money supply shocks in a Lucas Island model. Compared to the benchmark case in which wealth inequality is absent, the output's response can be either amplified or dampened. Then I analyse how income cyclicity affects output's responses. In Chapter 3, I analyze the collusion behavior in an n-firm industry featuring a cross-ownership network, under Cournot competition. I find that increasing PCO can hinder tacit collusion under the uniform output distribution scheme. However, this scheme is not always feasible for collusion. I examine different subgame perfect equilibriums and conclude that tacit collusion can be facilitated when PCO increases.