Present Bias Amplifies the Household Balance-Sheet Channels of Macroeconomic Policy
研究了在家庭具有现时偏差时间偏好和天真信念的异质性主体模型中，货币与财政政策的效果。发现现时偏差提高了边际消费倾向，增强了财政政策效应，并放大了货币政策效果但减缓了传导速度。
Abstract We study the effect of monetary and fiscal policy in a heterogeneous-agent model where households have present-biased time preferences and naive beliefs. The model features a liquid asset and illiquid home equity, which households can use as collateral for borrowing. Because present bias substantially increases households’ marginal propensity to consume (MPC), present bias increases the effect of fiscal policy. Present bias also amplifies the effect of monetary policy, but at the same time, slows down the speed of monetary transmission. Interest rate cuts incentivize households to conduct cash-out refinances, which become targeted liquidity injections to high-MPC households. Present bias also introduces a motive for households to procrastinate refinancing their mortgages, which slows down the speed with which this monetary channel operates.