The income of a household varies substantially over time and the uncertainty households face with respect to future incomes is large. This leads household to accumulate precautionary savings. In the past, …. Continue reading !


Labor Markets

Some of the most well known facts among macroeconomists are that labor market flows are large and employment fluctuates over the business cycle. For the performance of an economy it is important … Continue reading !



Efficient allocations of production factors equalize revenue productivities across productive units (in a static environment). However, frictions in investment and technology adjustment lead to differences in factor product… Continue reading !

HUMP is a research agenda financed by the European Research Council (ERC), (from 01/2012 to 02/2016) It constitutes of several projects, each involving some aspect of heterogeneity and uncertainty with implications for the macro-economy. …

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The research agenda is organized in three groups of projects:

A first set of projects studies how Households deal with shocks to their incomes, when these shocks cannot be explicitly insured against. Households will accumulate savings for precautionary motives to self-insure. This means aggregate demand fluctuates whenever the income risks that households face are changing.

Since Labor Markets are the key source of these income risks for households, it is paramount to understand how frictions in the labor labor market, and fluctuations in labor market flows contribute to these risks and the productivity development of an economy as a whole. This is the focus of a second set of projects.

Finally, this view on uncertainty and heterogeneity is incomplete without a precise understanding of the frictions Firms are facing in adjusting other factors of production and their technologies as a whole, which is the focus of a third group of projects. All projects presented on this website have received financial support from the European Research Council (ERC) under under the European Union’s Seventh Framework Programme (FTP/2007-2013) / ERC Grant agreement no. 282740 and this support is gratefully acknowledged.