Labor Taxes, Productivity, and Tax Competition (with A. Lahiri)
Heterogeneity in the Credit Card Market (with B. Eyigungor)(Feb '23, Preliminary) PDF
Saving for a Sunny Day: An Alternative Theory of Precautionary Savings (with L. Briglia, D. Corbae, K. Dempsey, J-V. Rios-Rull) (Feb '22, Preliminary) PDF
The Changing Polarization of Party Ideologies: The Role of Sorting (with B. Eyigungor) (Revised, Sep '23) PDF
Accepted/Forthcoming/Published Papers and Comments
A Quantitative Theory of the Credit Score (with D. Corbae, K. Dempsey, and J-V. Rios-Rull), Econometrica, 91(5), September 2023, p. 1803-1840, PDF
The Firm Size and Leverage Relationship and Its Implications for Entry and Business Concentration (with B. Eyigungor), Review of Economic Dynamics, 48, April 2023, pp. 132-157, PDF
Self-fulfilling Debt Crises, Revisited (with M. Aguiar, H. Cole, and Z. Stangebye), Journal of Political Economy, 130(5), May 2022, pp. 1147-1183, PDF
Policy Inertia, Election Uncertainty and Incumbency Disadvantage of Political Parties (with B. Eyigungor), Review of Economic Studies, 87(6), November 2020, pp. 2600-2638, PDF
Endogenous Political Turnover and Fluctuations in Sovereign Default Risk (with B. Eyigungor), Journal of International Economics, 117, March 2019, pp. 37-50.
A Tractable City Model for Aggregative Analysis (with B. Eyigungor), International Economic Review, 58 (1), 2017, pp.127-155.
Quantitative Models of Sovereign Debt Crises (with M. Aguiar, H. Cole and Z. Stangebye), Handbook of Macroeconomics (Ed. J.B. Taylor and H. Uhlig), Vol 2B, 2016, pp. 1697-1755.
Continuous Markov Equilibria with Quasi-Geometric Discounting (with B. Eyigungor), Journal of Economic Theory, 163 (May), 2016, pp. 467-494.
A Seniority Arrangement for Sovereign Debt (with B. Eyigungor), American Economic Review, 105(12), 2015, 3740-3765.
Quantitative Analysis of the US Housing and Mortgage Markets and the Foreclosure Crisis (with B. Eyigungor), Review of Economic Dynamics, 18(2), 2015, pp. 165-184.
Entry and Exit, Product Variety and the Business Cycle (with R.Cooper), Economic Inquiry, 52(4), 2014, pp.1466-1484.
Insuring Student Loans Against the Financial Risk of Failing to Complete College (with F. Ionescu) Quantitative Economics, 3(3), 2012, pp. 393-420.
Dealing with Consumer Default: Bankruptcy vs Garnishment (with G. Gordon) Journal of Monetary Economics, 59, Supplement , 2012, pp. s1-s16.
Maturity, Indebtedness, and Default Risk (with B. Eyigungor) American Economic Review, 102(6), 2012, pp. 2674-2699.
Spinoffs and the Market for Ideas (with E. Rossi-Hansberg) International Economic Review, 53 (1), 2012, pp. 53-93.
A Finite Life, Private Information Theory of Unsecured Consumer Debt (with D.Corbae, J-V. Rios-Rull) Journal of Economic Theory, 142(1), 2008, pp. 149-177.
A Quantitative Theory of Unsecured Consumer Credit with Risk of Default (with D.Corbae, M.Nakajima and J-V.Rios-Rull) Econometrica, 75(6), 2007, pp. 1525-1589.
Aggregate Welfare Costs of Great Depression Unemployment (with D.Corbae) Journal of Monetary Economics 54(6), 2007, pp. 1529-44
Urban Density and Rate of Invention (with G.Carlino and R.Hunt) Journal of Urban Economics 61(3), 2007, pp. 389-415
Monetary and Financial Forces in the Great Depression (with D. Corbae) New Palgrave: A Dictionary of Economics
Employment Deconcentration: A New Perspective on America’s Postwar Urban Evolution (with G. Carlino) Journal of Regional Science, 42, 2002, pp.455-475.
Aggregate Metropolitan Employment Growth and Deconcentration of Metropolitan Employment (with G. Carlino) Journal of Monetary Economics, 48, 2001, pp. 549-583.
Minimum Consumption Requirements: Theoretical and Quantitative Implications for Growth and Distribution (with B. Ravikumar) Macroeconomic Dynamics, 3, 1999, pp. 482-505.
Money and Finance with Costly Commitment (with D. Corbae) Journal of Monetary Economics, 37(2-3), 1996, pp. 225-248.
Comment on "Inflation, Financial Markets, and Capital Formation," (by S. Choi, B.D. Smith and J.H. Boyd) Federal Reserve Bank of St. Louis Review 78 (3), 1996, pp. 38-39.
Valuation Equilibria with Transactions Cost, (with D. Corbae) American Economic Review, Papers and Proceedings, May 1995, 287-290.
Transitional Dynamics and the Distribution of Wealth in a Neoclassical Growth Model Journal of Public Economics, 54, 1994, 97-119.
Strategic Complementarity in Business Formation: Aggregate Fluctuations and Sunspot Equilibria (with B. Ravikumar and R. Cooper) Review of Economic Studies, 60, 1993, pp. 795-811.
Comment on "Price and Output Stability Under Alternative Monetary Policy Rules," (by J.E. Gagnon and R.W. Tryon) Operating Procedures and the Conduct of Monetary Policy, Board of Governors of the Federal Reserve System. [Proceedings] No. 1 pt. 2, 1993. PDF
Endogenous Market Participation and the General Equilibrium Value of Money (with Dean Corbae) Journal of Political Economy, 100, June 1992, pp. 615-646.
A Neoclassical Model of Seasonal Fluctuations (with B. Ravikumar) Journal of Monetary Economics, 29, No.1, 1992, pp. 59-86.
Multiplicity of Equilibria and Fluctuations in Dynamic Imperfectly Competitive Economies (with R. Cooper) American Economic Review, Papers and Proceedings, May 1989, 353-57.
Unpublished Research Papers
Debt Dilution and Seniority in a Model of Defaultable Sovereign Debt (with B. Eyigungor) PDF
Do Supply Restrictions Raise the Value of Urban Land? The (Neglected) Role of Production Externalities (with B. Eyigungor) PDF
Foreclosures and House Price Dynamics: A Quantitative Analysis of the Mortgage Crisis and the Foreclosure Prevention Policy (with B. Eyigungor) PDF
A Quantitative Assessment of the Role of Agglomeration Economies in the Spatial Concentration of U.S. Employment PDF
Competitive Theories for Economies with General Transactions Technologies (with D. Corbae) PDF
A Welfare Comparison of Pre- and Post-WWII Business Cycles: Some Implications for the Role of Postwar Macroeconomic Policies (with D. Corbae) PDF
A Neoclassical Approach to the Puzzling Seasonal Behavior of Aggregate Output and Sales (with B. Ravikumar) PDF
On the Optimality of Eliminating Seasonality in Nominal Interest Rates PDF
Chapter 11 for Countries?, Economic Insights, Federal Reserve Bank of Philadelphia, Second Quarter 2016. Link
Debt Overhang: Why Recovery from a Financial Crisis Can be Slow, Business Review, Federal Reserve Bank of Philadelphia, Second Quarter 2013 (Reprinted in The Credit and Financial Management Review, Volume 19, No.3, Third Quarter, 2013). Link
A Theory of Asset Price Booms and Bust and the Uncertain Return to Innovation, Business Review, Federal Reserve Bank of Philadelphia, Fourth Quarter 2011. Link
De-Leveraging and the Financial Accelerator: How Wall Street Can Shock Main Street, Business Review, Federal Reserve Bank of Philadelphia, Second Quarter 2010. Link
The Peopling of Macroeconomics: The Microeconomics of Aggregate Consumer Expenditures, Business Review, Federal Reserve Bank of Philadelphia, First Quarter 2009. Link
The Economic Logic of Fresh Start, Business Review, Federal Reserve Bank of Philadelphia, First Quarter 2008. Link
The Long Run Effects of the Bankruptcy Reform Bill, Research Rap, Federal Reserve Bank of Philadelphia, July 2006. Link
Ores and Scores: Two Examples of How Competition Engendered Productivity Miracles, Business Review, Federal Reserve Bank of Philadelphia, First Quarter, 2005. Link
Agglomeration Economies: The Spark that Ignites a City? Business Review, Federal Reserve Bank of Philadelphia, Third Quarter, 2003. Link
The Taylor Curve and the Unemployment-Inflation Tradeoff, Business Review, Federal Reserve Bank of Philadelphia Third Quarter 2002 Link
Why Does Countercyclical Monetary Policy Matter? Business Review, Federal Reserve Bank of Philadelphia Second Quarter 2001 (Reprinted in Boletin, Centro De Estudios Monetarios LatinoAmericanos, XLVII, No. 4, October-December, 2001). Link
From Cycles to Shocks: Progress in Business Cycle Theory, Business Review, Federal Reserve Bank of Philadelphia March/April 2000. Link
Real Business Cycles: Legacy of Countercyclical Policies? Business Review, Federal Reserve Bank of Philadelphia, January/February 1999 (Reprinted in The Region, Federal Reserve Bank of Minneapolis, March 1999 and The Credit and Financial Management Review, Volume 5, No.4, Fourth Quarter, 1999). Link
Homeownership, Taxes, and the Allocation of Residential Real Estate Risks, Business Review, Federal Reserve Bank of Philadelphia, September/October 1996. Link
Productivity Growth and the American Business Cycle, Business Review, Federal Reserve Bank of Philadelphia, September/October 1995. Link
Making More Out of Less: The Recipe for Long-Run Growth, Business Review, Federal Reserve Bank of Philadelphia May/June 1994. Link
Leaning Against the Seasonal Wind: The Case for Seasonal Smoothing of Interest Rates, Business Review, Federal Reserve Bank of Philadelphia, March/April 1993. Link