International Conference 2022 on "Household Heterogeneity and Policy Relevance"

Household Heterogeneity and Policy Relevance

The global financial crisis, the COVID-19 pandemic and the ongoing energy crisis have affected households differently depending on their socioeconomic status. In addition, households react differently to economic policies, depending on the specific constraints to which they are subject and the opportunities available to them. In general, society has become more sensitive to these distributional concerns. In this regard, recent economic analyses have documented trends in and drivers of inequality and shown the importance of household heterogeneity when it comes to ensuring the effectiveness of policy interventions. Economic models have been improved to incorporate various aspects of heterogeneity. These empirical and theoretical insights form the basis for optimal policy design that accounts for distributional concerns.

The results of several new studies on these subjects will be presented at the conference. Twelve teams of Belgian and international researchers will set out their findings, each time followed by a discussion with international experts. Our keynote speakers will be Giovanni L. Violante (Princeton University) and Amir Sufi (University of Chicago).

Introduction by Pierre Wunsch, Governor of the National Bank of Belgium

Session 1: Distributional effects of shocks and policy 

Chair:  Catherine Fuss (Economics and Research Department – NBB)

 

Keynote presentation
Some like it hot: a distributional analysis of inclusive monetary policy
Giovanni L. Violante (Princeton University)

The consumption response to labour income changes 
Kris Boudt, Koen Schoors, Milan van den Heuvel, Johannes Weytjens (Universiteit Gent)

Heterogeneous household responses to energy price shocks
Gert Peersman (Universiteit Gent) and Joris Wauters (National Bank of Belgium

Session 2: Various aspects of household heterogeneity and implications

Chair: Raf Wouters (Economics and Research Department – NBB)

Invited presentation
Optimal monetary policy during a cost-of-living crisis
Vincent Sterk (University College London)

Income inequality in general equilibrium
Bastien Bernon (Université libre de Bruxelles), Joep Konings (KU Leuven, GSB Nazarbayev, CEPR) and Glenn Magerman (Université libre de Bruxelles, CEPR)
Discussant: Julien Sauvagnat (Bocconi University)

The long and short of financing government spending

Jochen Mankart (Deutsche Bundesbank), Rigas Oikonomou (UCLouvain) and Romanos Priftis (European Central Bank)
Discussant: Fernando Broner (CREI, UPF, Barcelona School of Economics)

Labour supply of households facing a risk of job loss
Wouter Gelade, Maud Nautet and Céline Piton (National Bank of Belgium)

Session 3: Household finance 

Chair:  Olivier De Jonghe (Economics and Research Department – NBB)

Invited presentation
The long-run impact of a marginal mental health diagnosis on income, wealth, and health. Evidence from randomly assigned doctors.
Marieke Bos (Swedish House of Finance at the Stockholm School of Economics, Vrije Universiteit Amsterdam)

Over-indebtedness and poverty : patterns across household types and policy effects
Sarah Kuypers and Gerlinde Verbist (Centrum voor Sociaal Beleid Herman Deleeck – Universiteit Antwerpen)

Evaluating heterogeneous effects of housing-sector-specific macroprudential policy tools on Belgian house price growth
Lara Coulier and Selien De Schryder (Universiteit Gent)

Bank competition and bargaining over refinancing
Marina Emiris (National Bank of Belgium), François Koulisher (Université du Luxembourg) and Christophe Spaenjers (University of Colorado Boulder)

Session 4: Inequality: drivers and implications

Chair: Pelin Ilbas (Economics and Research Department – NBB)


Housing inequality and how fiscal policy shapes it: evidence from Belgian real estate
Gerard Domènech-Arumi (Université libre de Bruxelles), Paula Gobbi and Glenn Magerman (Université libre de Bruxelles, CEPR)

Income inequality and the German export surplus
Ansgar Rannenberg (National Bank of Belgium), Thomas Theobald (Institut für Makroökonomie und Konjunkturforschung Düsseldorf)

Keynote presentation
Role of inequality in finance and macroeconomics
Amir Sufi (University of Chicago)