Krzysztof Pytka


I'm a PhD candidate in Economics Image of a Krzysztof Pytka at the European University Institute in Florence, Italy. I specialize in Macroeconomics, in particular in 1. consumption; and 2. search theory. My technical interests also cover computational economics and (applied) statistical learning. For some time, I've focused on incorporating frictions in the purchasing technology into the standard incomplete markets model.

In the next academic year I will join the University of Mannheim as an Assistant Professor (Juniorprofessor)!


Working Papers

1. Shopping Effort in Self-Insurance Economies - Job Market Paper [article] [slides]

Best Paper Prize for Young Economists at the WIEM’16 conference.

How are income fluctuations transmitted to consumption decisions if the law of one price does not hold? I propose a novel and tractable framework to study search for consumption as part of the optimal savings problem. Due to frictions in the retail market, households have to exert some effort to purchase the consumption good. This effort has two components: 1. effort to search for price bargains; 2. effort required to purchase consumption of a given size. These two motives are necessary to replicate two seemingly contradictory shopping patterns observed in the data, namely: higher time spent shopping by the unemployed and retirees and (conditioned on being employed) the positive elasticity of shopping time with respect to labor income. The former is well known in the literature, while the latter is new and I document it using data from the American Time Use Survey. The model allows me to reconcile the traditional savings theory with households' shopping behavior in a quantitatively meaningful way. As I show frictions in the purchasing technology generate important macroeconomic implications for modeling inequality and, in general, household consumption.

2. Bargain Hunting in Equilibrium Price Dispersion

In this article, I study equilibrium properties of a standard model of endogenous price distribution due to Burdett and Judd (1983). In search economies of this type in most cases there are two dispersed equilibria, low-search and high-search one. I show that the low-search equilibrium is unstable while the high-search equilibrium is stable. What is important every allocation can be characterized only as one of those types. This finding substantially narrows the range of allocations, in which the price dispersion is stable and its form is not a temporary phenomenon. To recover the stability of every allocation I propose a refinement of the original model, which gives rise to one unique symmetric dispersed equilibrium. This equilibrium is shown to be stable and it can be used to rationalize every allocation. In addition to this, in contrast to the original model the degenerate Diamond (1971)-type equilibrium is unstable.

3. Monetary Policy and Price Search

This paper evaluates the role of frictions in the purchasing technology for the redistributive function of monetary policy. I show that money injection to households might reduce the inefficiency generated by non-competitive behavior of firms. The lump-sum transfers financed through seignorage increases the fraction of the aggregate consumption purchased by bargain hunters, cash-poor households with high marginal propensity to consume and high price search intensity. This results in the reduction of the monopolistic power of firms and lower real consumption prices. The quantitative model suggests that thanks to this channel the tension between equity and efficiency is mitigated.

Work in progress

1. General Equilibrium Theory of Shopping, Consumption, and Price Dispersion (jointly with Greg Kaplan)

2. Labor Market and Business Cycle: Expansion vs. Contraction

3. Shape-Preserving Chebyshev Approximation of Multivariate Functions


People who can say something more about my research agenda (and me):

  1. Árpád Ábrahám (EUI);
  2. Piero Gottardi  (EUI);
  3. Greg Kaplan (UChicago);
  4. Mark Aguiar (Princeton).


You can find my CV here.


In the course of my Master and PhD studies I was a TA for some courses:

  1. Macroeconomics [PhD course @EUI];
  2. Advanced Statistical Learning in R/S-Plus [MA course @SGH];
  3. Introduction to Econometrics [BA course @SGH];
  4. Operations Research [BA course @SGH].

Here you can find the (old) website with teaching materials.


Department of Economics
European University Institute
Villa La Fonte,
Via delle Fontanelle 18,
I-50014 San Domenico di Fiesole, Italy
e-mail: ***


In my free time I (used to) write for Hummus Œconomicus, a Polish popular-science blog about economics. Here you can find my posts (sadly only in Polish).

If you're curious about the pronounciation of my given name it goes by [kʂɨʂt̪ɔf] in IPA. But Christoph is totally fine with me.

The website has been visited

times since 2010.