This is my pet project. It is a work in progress and will probably be ongoing for a long time. This page captures the posts that relate to this project.
The first post relates to the work of Mian & Sufi (2011). It gives a brief overview of the great empirical work done by these authors and highlights how this might impact on short run macro.
The first stage of building the new cubic model was laid out in this post:
The second stage of the model was outlined in this post:
These are the basics of the model, but there will be more to explore in the near future. Any comments or questions welcome!