-
Employee Profile

Karl Harmenberg

Postdoctoral Fellow - Department of Economics

Biography

Karl Harmenberg is a macroeconomist. See karlharmenberg.com for more info!

Area of Expertise

Publications

Boppart, Timo; Harmenberg, Karl, Krusell, Per & Olsson, Jonna (2022)

Integrated epi-econ assessment of vaccination

Journal of Economic Dynamics and Control, 140 Doi: 10.1016/j.jedc.2022.104308

Using an integrated epi-econ model, we compute the value of vaccines for Covid-19, both under a planner’s solution and in competitive equilibrium. The specific model, developed in Boppart, Harmenberg, Hassler, Krusell, and Olsson (2020), factors in not just value-of-life aspects along with standard economic variables but also the value of leisure activities that rely on a social component. We find that the societal value of vaccination is large; we estimate that, translated into monetary terms, the value of vaccinating one young individual in the competitive equilibrium is $17,800. Externalities are large: less than half the societal value is internalized by individuals (assuming that they act purely in their self-interest). Finally, behavioral responses are important, with a substantial share of the value of vaccines being attributed to people enjoying more socially-oriented leisure when more people are vaccinated.

Harmenberg, Karl & Öberg, Erik (2021)

Consumption dynamics under time-varying unemployment risk

Journal of Monetary Economics, 118, s. 350- 365. Doi: 10.1016/j.jmoneco.2020.10.004

In response to an adverse labor-market shock, a calibrated heterogeneous-agent model predicts that aggregate spending on durable goods falls mainly due to the ex-ante increase in income uncertainty caused by higher unemployment risk. In contrast, aggregate spending on nondurable goods falls mainly due to the ex-post income losses associated with realized unemployment spells. When households hold little liquid assets, the nondurable spending response is amplified, whereas the durable spending response is dampened. These differences stem from micro-level adjustment frictions involved in purchases of durable goods. The model is corroborated with evidence from micro survey data.

Harbo Hansen, Niels-Jakob; Harmenberg, Karl, Öberg, Erik & Sievertsen, Hans (2021)

Gender Disparities in Top Earnings: Measurement and Facts for Denmark 1980-2013

Journal of Economic Inequality Doi: 10.1007/s10888-020-09476-1

Harmenberg, Karl (2021)

Aggregating Heterogeneous-Agent Models with Permanent Income Shocks

Journal of Economic Dynamics and Control, 129 Doi: 10.1016/j.jedc.2021.104185

I introduce a method for simulating aggregate dynamics of heterogeneous-agent models where log permanent income follows a random walk. The idea is to simulate the model using a counterfactual permanent-income-neutral measure which incorporates the effect that permanent income shocks have on macroeconomic aggregates. With the permanent-income-neutral measure, one does not need to keep track of the permanent-income distribution. The permanent-income-neutral measure is both useful for the analytical characterization of aggregate consumption-savings behavior and for simulating numerical models. Furthermore, it is trivial to implement with a few lines of code.

Boppart, Timo; Hassler, John, Harmenberg, Karl, Krusell, Per & Olsson, Jonna (2021)

Integrated epi-econ assessment

[Academic lecture]. Research seminar.

Broer, Tobias; Druedahl, Jeppe, Harmenberg, Karl & Öberg, Erik (2021)

The Unemployment-Risk Channel in Business-Cycle Fluctuations

[Academic lecture]. Macroeconomic seminar series.

Boppart, Timo; Harmenberg, Karl, Krusell, Per & Olsson, Jonna (2021)

Integrated epi-econ assessment of vaccination

[Academic lecture]. Fed St. Louis-JEDC-SCG-SNB-UniBern Conference.

Academic Degrees
Year Academic Department Degree
2018 Institute for International Economic Studies, Stockholm University PhD