Current Research (A lot of
this material was developed under NSF grants number SBR-9309514,
SES-9110991, 0079504, and 0351451.
-
The Generalized Euler Equation and the Bankruptcy-Sovereign
Default Problem. With Xavier Mateos-Planas, Sean
McCrary and Adrien Wicht. This version, October 23.
Abstract: [...]
-
International Tax Competition with Rising Intangible
Capital and Financial Globalization. With Vincenzo
Quadrini. This version, October 30. Forthcoming JMoE.
Abstract: [...]
-
Commitment in the Canonical Sovereign Default Model
With Xavier Mateos-Planas, Sean McCrary and Adrien Wicht. This version, March 23.
Abstract: [...]
-
A Protocol for Repeated Bargaining
With Akihisa Kato. Economic Letters, Volume 227, June 2023, 111132.
Abstract: [...]
-
Procyclical Productivity in New Keynesian Models With Zhesheng Qiu (December 21).
Abstract: [...]
-
A Quantitative Theory of the Credit
Score With Satyajit Chatterjee, Dean
Corbae, and Kyle Dempsey (Jan 23) (First version
2004). Econometrica, Vol. 91, No. 5 (September, 2023), 1803–1840.
Abstract: [...]
-
Health versus Wealth: On the Distributional Effects of Controlling a Pandemic with Andrew Glover, Jonathan
Heathcote, and Dirk Krueger. Forthcoming JMoE. This version, July 2023.
(First Version March 2020). A previous version appeared in Covid
Economics: Vetted and Real-Time Papers Issue 6, April
17, 2020, and as
a Mpls
Fed WP
Abstract: [...]
-
The Welfare Cost of Inflation Revisited: The Role of
Financial Innovation and Household Heterogeneity with Shutao Cao, Cesaire
A. Meh, and Yaz Terajima. Journal of Monetary Economics, Volume 118, March 2021, Pages 366-380. This version July 2019.
Abstract: [...]
-
Banking Dynamics, Market Discipline and Capital Regulations
with Tamon Takamura, and Yaz Terajima. This
version March July 2020.
Abstract: [...]
-
Partial Default with Cristina
Arellano and Xavier Mateos-Planas, (This version July
2022). Forthcoming, Journal of Political Economy.
Online Appendix.
Abstract: [...]
-
Sticky Wage Models and Labor Supply
Constraints. with Zhen Huo.
American Economic Journal: Macroeconomics 12, 3, 2020,
(pp. 284-318). This
Version May 2019.
Abstract: [...]
-
Demand Induced Fluctuations with Zhen
Huo (This Version May
2020).
Review of Economic Dynamics. 37, S99-S117. Cannibalized material from Paradox of Thrift
Recessions.
Abstract: [...]
-
Labor Share and Productivity Dynamics
with Se-Kyu Choi (August 2020). Forthcoming, Economic Journal. Abstract: [...]
-
Institution Building without
Commitment with Marco Bassetto and Zhen
Huo. This Version August 2020. A previous version
circulated as "Organizational Equilibrium with
Capital". Abstract: [...]
-
2013 Update on the U.S. Earnings, Income, and Wealth
Distributional Facts: A View from
Macroeconomics. with Moritz
Kuhn. Federal Reserve Bank of Minneapolis Quarterly
Review April 2016.
Tables updated with up to 2019 SCF.
Abstract: [...]
-
Financial Frictions, Asset Prices, and the Great Recession with Zhen Huo (February 2016).
Abstract: [...]
-
The Great Recession and Financial
Shocks. with Zhen Huo (November 2015). This is
a short piece for the Mpls Fed.
Abstract: [...]
-
Demand Shocks and Open Economy
Puzzles. with Yan Bai (January 2015).
American Economic Review Papers & Proceedings, 105, 5, 644-49 .
Abstract: [...]
-
Credit, Bankruptcy, and Aggregate Fluctuations.
with Makoto Nakajima (November 2019, this version corrects
many typos from October 2019). First presented in ESSIM 2004. Abstract: [...]
-
Tightening Financial Frictions on Households, Recessions,
and Price Reallocations with Zhen
Huo. Review of Economic Dynamics, 18, 1, January 2015, Pages 118-139. Abstract: [...]
-
Inequality
in Macroeconomics With Vincenzo Quadrini. Chapter 15 of the NH
Handbook of Income Distribution, volume 2B A.B. Atkinson
and F.J. Bourguignon (Eds.) This
version July 2014.
Abstract: [...]
-
A Realistic Neoclassical Multiplier with
Zhen Huo. Prepared for a Mpls Fed EPP. August,
2013. Abstract: [...]
-
Heterogeneity in Expected Longevities
with Josep Pijoan. "Demography," Volume 51, Issue 6, December 2014, pp. 2075-2102. Abstract: [...] A light description of the work for VoxEU is here also published here in The Region from the Mpls Fed.
-
Living Arrangements and Labor Market Volatility of Young Workers
with Sebastian Dyrda and Greg Kaplan (2019). Previously titled
Business Cycles and Household Formation: The Micro vs the
Macro Labor Elasticity February, 2012.
Abstract: [...]
-
Models of Government Expenditure Multipliers. with Sebastian Dyrda. February, 2012.
Abstract: [...]
-
Demand Shocks as Productivity
Shocks with Yan Bai and Kjetil
Storesletten September 2012. (This version September
2019).
Online Appendix.
Abstract: [...]
-
Inter-generational Redistribution in the Great
Recession with Andrew Glover, Jonathan
Heathcote, and Dirk Krueger. Journal of Political
Economy, 128, 10, 3730-3778. This version, January 2020,
includes online appendix). These are additional
Computer Files and
Data File.
Abstract: [...]
-
Facts on the Distributions of Earnings, Income, and Wealth
in the United States: 2007 Update with Javier
Diaz-Gimenez, and Andy Glover. Federal Reserve Bank of
Minneapolis Quarterly Review, February 2011, Vol. 34
No. 1.
Abstract: [...]
-
Methods versus Substance: Measuring the Effects of
Technology Shocks on Hours with Frank
Schorfheide, Cristina Fuentes-Albero, Maxym Kryshko, and
Raul Santaeulalia-Llopis. This version April 2012. Online Appendix
Abstract: [...]
-
Aggregate and Welfare Effects of Redistribution of Wealth
Under Inflation and Price-Level Targeting with
Cesaire A. Meh and Yaz Terajima (April 2010). Journal of
Monetary Economics (2010) Volume 57,
pp. 637-652. Appendix.
Abstract: [...]
-
Understanding the Dynamics of Labor Share: The Role of
Noncompetitive Factor Prices with
Se-Kyu Choi. June 2008.
Abstract: [...]
-
Credit Lines with Xavier Mateos-Planas,
Dec 2013, (First Version 2007).
Abstract: [...]
-
On the Welfare Implications of Financial Globalization
without Financial Development With Enrique
Mendoza and Vincenzo Quadrini. NBER International Seminar
on Macroeconomics (ISOM), annual, Septemeber 2007.
Abstract: [...]
-
Redistributive Shocks and Productivity Shocks with Raul Santaeulalia-Llopis Journal of Monetary Economics (2010) Volume 57, pp. 931-948. Abstract: [...]
-
Financial Integration, Financial Development and Global
Imbalances
with Enrique G. Mendoza and Vincenzo Quadrini.
Journal of Political Economy, (2009) Volume 117, 3, 371-410.
Abstract: [...]
-
A Finite-Life Private-Information Theory of Unsecured
Consumer Debt with Satyajit Chatterjee
and Dean Corbae. Journal of Economic Theory, (2008), 1422,
149-177.
Abstract: [...]
-
An Aggregate Economy with Different Size Houses
with Virginia Sanchez-Marcos, Papers and
Proceedings of the Journal of the European Economic
Association, April-May 2008, Vol. 6, No. 2-3, Pages 705-714.
Abstract: [...]
-
Social Security, Life Insurance and Annuities for Families
with Jay Hong, Journal of Monetary Economics,
Volume 54/1, 118-140 (2007) (Carnegie-Rochester Proceedings).
Abstract: [...]
-
Life Insurance and Household Consumption
with Jay Hong, (This version January 2012, forthcoming AER (short paper)). Appendix not for publication
Abstract: [...]
-
Constrained Efficiency in the Neoclassical Growth Model
with Uninsurable Idiosyncratic Shocks
with Julio Davila, Jay Hong and Per Krusell, forthcoming
Econometrica, (July 2005, this version April 2012)
Abstract: [...]
-
On the The Living Arrangements of Elderly Widows
with Carlos Bethencourt. International Economic
Review, Vol. 50, Issue 3, pp. 773-801, August
2009. (Version January 2008).
Abstract: [...]
-
Time-Consistent Public Policy with Paul Klein
and Per Krusell (This version September 2007). Review of
Economic Studies, (2008) Volume 75, No. 3, 789-808.
Click here for additional material(codes, alternative
approximations and various plots)
and
here for a description of the material.
Abstract: [...]
-
Families as Shocks with Luis Cubeddu. Journal
of the European Economic Association Volume 1, Issue 2-3,
671-682 (April/May 2003).
Abstract: [...]
-
Default and Aggregate Fluctuations in Storage
Economies. with Makoto Nakajima (July
2002). Chapter 7, Frontiers In Applied General
Equilibrium Modeling, pp. 127-150, 2005 Cambridge
University Press, "Essays in Honor of Herbert Scarf".
Abstract: [...]
-
The Success and Failure of Reforms in Transition
Economies. with Stephen Parente. (This Version,
June 2004). Journal of Money Credit and Banking, Vol
37. 1 23-42 (February 2005).
Abstract: [...]
-
College Attainment of Women with Virginia
Sanchez Marcos. (May 2002). Review of Economic Dynamics,
Volume 5, Issue 4, Pages 965-998 (October 2002).
Abstract: [...]
-
Updated Facts on the U.S. Distributions of Earnings,
Income and Wealth. with Santiago Budria, Javier
Diaz-Gimenez, Vincenzo Quadrini. (Revised in August
2002). Federal Reserve Bank of Minneapolis Quarterly
Review.
Abstract: [...]
-
Desigualdad, ¿Qué
sabemos? (In
Spanish). Investigaciones Economicas. Vol. XXVI
(2), 2002, 221-254.
Abstract: [...]
-
The Research Agenda: On the Determinants of Inequality
(Electronic Supplement to RED, Vol 3, Issue 1, Nov
2001).
Abstract: [...]
-
A Quantitative Theory of Unsecured Consumer Credit with Risk
of Default with Satyajit Chatterjee, Dean Corbae,
and Makoto Nakajima. Version, December 2006. Econometrica},
Vol. 75, No. 6 (November, 2007), 1525-1589.
Abstract: [...]
-
Optimal time-consistent taxation with international mobility
of capital
with Paul Klein and Vincenzo Quadrini. (June 2005).
Abstract: [...]
-
What Accounts for the Increase in the Number of Single
Households? with Ferdinando Regalia and
Jacob Short. (Feb. 2019).
Abstract: [...]
-
Implementing the 35 Hour Workweek by Means of Overtime
Taxation
with Victoria Osuna. (This version March 2002).
Abstract: [...]
-
Precautionary Savings and Wealth Distribution under Habit Formation Preferences
with Antonia Diaz and Josep Pijoan-Mas. (Aug
2003). JMoE.
Abstract: [...]
-
On the Equilibrium Concept for Overlapping Generations
Organizations
with Edward C. Prescott. Jan 2004 Version.
Abstract: [...]
-
Consumption Smoothing and Extended Families
joint with Orazio Attanasio. This is the invited lecture that
Orazio Attanasio presented in the 2000 World Congress in
Seattle. Dec 2000 version.
Abstract: [...]
-
Time-Consistent Optimal Fiscal Policy
joint with Paul Klein. (Version September 2002).
Abstract: [...]
-
Population Changes and Capital Accumulation: The Aging of
the Baby Boom.
Version of February 2001. BJEM.
Abstract: [...]
-
Accounting for Earnings and Wealth Inequality
August 2002 version. With Ana Casta~neda and Javier
Diaz-Gimenez. JPE.
Abstract: [...]
There is also an older version of the paper that
assessed the implications of a change of
taxes.
Earnings and Wealth Inequality and Income Taxation:
Quantifying the Trade-Off's of Switching to a Proportional
Income Tax in the U.S.
Abstract: [...]
-
Consumption Smoothing in Island Economies: Can Public
Insurance Reduce Welfare.
with Orazio
Attanasio. EER.
There is also a pdf version.
Abstract: [...]
-
On the Size of the U.S. Government: Political Economy in the
Neoclassical Growth Model. There are
four graphs that go with
it.
Figure
1
Figure
2
Figure
3
Figure 4 (4/5/99 version) with Per
Krusell. AER.
Abstract: [...]
-
Measuring Inequality: Facts on the Distribution of Earnings,
Income and Wealth (with Javier Diaz-Gimenez and
Vincenzo Quadrini). Federal Reserve Bank of Minneapolis Quarterly
Review.
Abstract: [...]
-
Understanding the U.S. Wealth
Distribution (Joint with Vincenzo
Quadrini). Federal Reserve Bank of Minneapolis Quarterly
Review.
Abstract: [...]
-
Marital Risk and Capital Accumulation (with Luis
Cubeddu). (6/18/97 pdf version.)
Abstract: [...]
-
Computation of Equilibria in Heterogeneous Agent
Economies
Abstract: [...]
-
The Balance of Payments and Borrowing Constraints: An
Alternative View of Recent Events in Mexico (with
Andy Atkeson). Formerly titled "How Mexico Lost Its Foreign
Exchange Reserves". Journal of International Economics.
Abstract: [...]
-
Capital-Skill Complementarity and Inequality. (joint
with Per Krusell, Lee Ohanian, and Giovanni L. Violante,
version of July 97). Econometrica. You can download the data we used for this paper as an ASCII file.
Abstract:
[...]
-
Simulation-Based Estimation of a Nonlinear, Latent Factor
AggregateProduction Function. (joint with Per Krusell,
Lee Ohanian, and Giovanni L. Violante).
Abstract: [...]
- On
the Quantitative Importance of Market Completeness.
Journal of Monetary Economics.
Abstract: [...]
-
Politico-Economic Equilibrium and Growth
(joint with Per Krusell and Vincenzo Quadrini). Journal of Economics Dynamics and Control. HAY VERSION EN CASTELLANO Equilibrio
Politico-Economico y Crecimiento Economico.
Abstract: [...]
- Politico-Economic
Transition (joint with Per Krusell) (Version December
2001). Review of Economic Design.
Abstract: [...]
- Heterogeneous
Agents Economies.
Abstract: [...]
- Life-Cycle
Economies and Aggregate Fluctuations. REStud.
Abstract: [...]
- On
the Existence, Uniqueness, and Computability of Non-Optimal
Recursive Equilibria in Linear Quadratic Economies.
with Sebastian Ceria.
Abstract: [...]
- Vested
Interests In a Positive Theory of Stagnation and
Growth with Per Krusell. Review of Economic Studies.
Abstract: [...]
-
Exploring the Income Distribuion Business Cycle
Dynamics (6/19/97) (previously titled
Unemployment Spells, Cyclically Moving Factor Shares and
Income Distribution Dynamics) with Ana Casta~neda and Javier
Diaz-Gimenez. JME.
Abstract: [...]
- Are
Consumption Taxes Really Better Than Income Taxes? with Per Krusell, and Vincenzo Quadrini. Journal of Monetary Economics 37 (1996).
Abstract: [...]
-
Working in the Market, Working at Home, and the Acquisition
of Skills: a General Equilibrium
Approach. American Economic Review, 83,
(1993), 893-907.
Abstract: [...]
-
Classical Competitive Analysis of Economies With
Islands, (with Ed Prescott), Journal of Economic
Theory, Volume 57, July 1992, 73-98.
Abstract: [...]
- Effects of Public Participative Credits on Firms'', (with Gonzalo Mato), published under the title ``Efectos de los Creditos Participativos en la Financiacion de las Empresas'', Investigaciones Economicas, Vol. X, 1986, 173-84. Abstract: [...]