John Kramer asks whether this mechanism generates strong business cycle amplification, and if second-order stabilization policies might deliver first-order growth benefits.

‪@haominwang.bsky.social‬ notes that in expansions, occupation switches may yield better skill matches. This may raise questions on frictions, promotions, and how policy shapes wage and occupation dynamics.

Liangjie Wu urges linking the results to wage inequality & labor share debates, and notes the model offers a new mechanism for polarization beyond vertical worker categorization.

@joachimjungherr.bsky.social asks: how does consumption in the model line up with micro evidence on MPCs vs APCs? Which observables best identify high-MPC agents? And how would adding an illiquid asset alongside a liquid one shift predictions?

@marek-ignaszak.bsky.social shows that similar patterns could arise under extreme financial frictions with two types of entrepreneurs: rich vs poor parents. Using IQ data can help distinguish whether transformative talent, rather than family background, drives differential growth.

Riccardo Silvestrini points to decreasing returns to scale (DRS) as a key remaining source of heterogeneity between top and bottom firms. How much does DRS—shaping optimal firm size, especially in the right tail—matter relative to other sources?

Anthony Savagar invites sharpening the welfare angle clearly documenting the trade-offs during shakeout would help clarify the forces behind optimal diffusion.

Sampreet Goraya asks about the social value of lock-in innovations. Is there an optimal degree of product differentiation? The model can be extended to link intermediate good differentiation with final good variety.

Suzanne Bellue highlights that optimism in subjective beliefs affects not just life expectancy, but also income, asset returns, and mortality risk, suggesting the need to examine untargeted moments in the model.

Yasmine Van der Straten highlights the need to unpack why households differ in taking up buy-back: is it inattention, differing interest rate expectations, or liquidity needs?