Organized by: Albert Marcet (ICREA-CREI, UPF, and BSE) and Francesc Obiols-Homs (UAB, MOVE, and BSE).

The development of macro models embedding inefficiencies and heterogeneity among agents has opened the door to studying optimal policy from a more interesting perspective than ever in the past. In this context, policy interventions have to deal with the trade off between inequality and possibly constrained efficiency. Not much is known about this, and it suggests a new role for the welfare state. The workshop aims at bringing together research in equilibrium models, macro and development policy, education, migration, energy etc., to guide policy.