TANK Model

Reference sources

Reference material used for orientation; read primary and academic sources first when claims conflict.

1. [S1] Reference

   Campbell and Mankiw (1989) -- Consumption, Income, and Interest Rates: Reinterpreting the Time Series Evidence. Empirical origin of the rule-of-thumb consumer idea.

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2. [S2] Reference

   Gali, Lopez-Salido, and Valles (2007) -- Understanding the Effects of Government Spending on Consumption. First DSGE embedding of rule-of-thumb consumers in an NK framework.

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3. [S3] Reference

   Bilbiie (2008) -- Limited Asset Market Participation, Monetary Policy, and (Inverted) Aggregate Demand Logic. Analytical TANK with the inverted demand result.

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4. [S4] Reference

   Debortoli and Gali (2018) -- Monetary Policy with Heterogeneous Agents: Insights from TANK. Showed TANK approximates HANK aggregate dynamics well for many shocks.

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5. [S5] Reference

   Bilbiie (2020) -- The New Keynesian Cross. Discounted Euler equation framework bridging TANK and HANK analytics.

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6. [S6] Reference

   Kaplan, Moll, and Violante (2018) -- Monetary Policy According to HANK. The full heterogeneous-agent benchmark against which TANK is evaluated.

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