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Monopsony Power and Creative Destruction (joint with Isabella Maassen and Filip Mellgren)
American Economic Journal: Macroeconomics 2026
This paper explores the trade-off between static efficiency and growth in monopsonistic labor markets using a tractable endogenous growth model with heterogeneous firms.
Recommended citation: Maassen, I., Mellgren, F., Overhage, J. (2026). "Monopsony Power and Creative Destruction", R&R, American Economic Journal: Macroeconomics. /files/MMO_Monopsony_Jan26.pdf
Inferring the Aggregate: Information Frictions and Fiscal Policy
2026
A rational expectations model with information frictions that generates hump-shaped consumption responses consistent with macro evidence and high MPCs in micro data.
Recommended citation: Overhage, J. (2026). "Inferring the Aggregate: Information Frictions and Fiscal Policy". /files/Overhage_JMP.pdf
Solving Heterogeneous Agent Models with Dispersed Information in Sequence Space
2026
Recommended citation: /files/SSP_Info.pdf