Working Papers / Work in Progress

[1] "Policy Effects of International Taxation on Firm Dynamics and Capital Structure" [New: June 7 2021] Paper, SlidesSeminar (Virtual ITM)
Revise and resubmit at Review of Economic Studies
This paper develops a quantitative open economy framework with dynamics, firm heterogeneity and financial frictions to study the impact of corporate tax reforms targeted at multinationals. The model quantifies their impact on firm selection, production and welfare. Firms draw idiosyncratic shocks, invest in capital, choose optimal financing and select endogenously into selling abroad, through exporting or FDI. I apply this framework to the removal of the U.S. repatriation tax as in the Tax Cuts and Jobs Act. The reform's impact trades-off two selection effects --- more offshoring versus greater U.S. business dynamism. The reform leads to higher U.S. welfare at little cost to the Treasury. A series of exercises illustrate that the novel features of this framework have significant quantitative implications. The reform gives starkly different cross-sectional predictions and lower welfare gains when financial frictions are removed and it is welfare reducing in a static counterpart of the model.  

[2] "A Re-Examination of Financing Constraints and Investment to Cash Flow Sensitivity", (with Shuyun May Li).

[3] ``Innovation Union: Costs and Benefits of Innovation Policy Coordination'' (with Fabrice Defever, Teodora Borota & Giammario Impulitti).

Peer-Reviewed Publications

[1] ''Twin Peaks: Covid-19 and the Labor Market'' (with Jake Bradley and Alessandro Ruggieri) [April 27 2021], Accepted with minor changes at European Economic Review, Paper, Appendix
This paper develops a choice-theoretic equilibrium model of the labor market in the presence of a pandemic. It includes heterogeneity in productivity, age and the ability to work from home. Worker and firm behavior changes in the presence of the virus, which itself has equilibrium consequences for the infection rate. The model is calibrated to the UK and counterfactual lockdown measures are evaluated. We find a different response in both the evolution of the virus and the labor market with different lockdown policies. A laissez-faire approach results in lives lost and acts as negative shock to the economy. A lockdown policy, absent any other intervention, will reduce the lives lost but increase the economic burden. Consistent with recent evidence, we find that the economic costs from lockdown are most felt by those earning the least. Finally, we introduce a job retention scheme as implemented by the UK Government and find that it spreads the economic hardship more equitably.

My Master's Dissertation from the University of Melbourne:
[2] "Effectiveness of the Australian Fiscal Stimulus Package: a DSGE Analysis", (with Shuyun May Li), 2016, Economic Record, 92, 94-120 - Link
We develop and estimate a small open economy dynamic stochastic general equilibrium model to investigate the effectiveness of the Australian fiscal stimulus package introduced in the aftermath of the global financial crisis (GFC). The estimated model implies a fiscal multiplier of 0.9 on impact and 1.26 with one-year monetary accommodation. Utilising the estimated shocks – in particular, the fiscal shocks that mimic the stimulus transfers – we conduct several counterfactual policy experiments. Our results suggest that the stimulus transfers were almost equally important as the concurrent monetary easing actions in helping the Australian economy to avoid a recession after the GFC.

Policy Papers

[1] ``The Effects of Removing the Corporate Repatriation Tax'', 2017, Center for Research on the Wisconsin Economy (CROWE) -  Link