Research

Working Papers:
Regional Heterogeneity and Monetary Policy (with Martin Beraja, Andreas Fuster and Erik Hurst. Updated August 2017)
Revision requested at Quarterly Journal of Economics
Brief Summary: We use loan level data + a quantitative model to argue that the time-varying distribution of home equity matters for monetary policy through a refinancing channel.

Publications:
Accepted at Journal of Political Economy
Brief Summary:  What drives countercyclical dispersion?  Greater volatility of shocks or greater response to shocks of the same size?  Standard data on endogenous outcomes can't answer this question, but we use BLS micro data + exchange rate shocks to provide identification.  The data supports responsiveness, not volatility shocks.

Accepted at Journal of Political Economy
Brief Summary: We provide evidence from microdata that wealth increases lead to reduced shopping effort by households and that firms respond by raising markups.

Accepted at European Economic Review
Brief Summary:  We use CPI, PPI and IPP micro data to document time-variation in the distribution of price changes. Fitting a simple model to this data implies greater price flexibility during recessions.

House Prices and Consumer Spending (with David Berger, Veronica Guerrieri and Guido Lorenzoni)
Review of Economic Studies, forthcoming.
Brief Summary: We show consumption response to house price movements in realistic consumption models are large, in contrast to the common view that theory implies small responses and provide intuition using a simple "rule-of-thumb".

Regional Redistribution Through the U.S. Mortgage Market  (with Erik Hurst, Ben Keys and Amit Seru)
American Economic Review. Volume 106, No. 10, Oct 2016
Brief Summary: We show GSE mortgage rates do not vary with local default risk while private mortgage rates do. The constant rate transfers money from regions with low risk to those with high risk.
Econometrica. Volume 83, No. 1, Jan 2015.    Supplemental Appendix
Brief Summary: We use indirect inference to estimate a household model of durable consumption with fixed costs of adjustment and show it implies stimulus has smaller effect during recessions.

American Economic Review: Papers and Proceedings, Volume 104, No. 5, May 2014.
Brief Summary: We use STVARs to provide empirical evidence that durable spending responds more strongly to identified government spending shocks during expansions than during recessions.

Quarterly Journal of EconomicsVolume 129, No. 1, Feb. 2014.    Supplemental Appendix 
Brief Summary:  I identify new micro pricing facts and show that these facts imply monetary policy faces a worse inflation-output tradeoff during times of high volatility.

Work In Progress:
Investment and Monetary Policy with Micro Data

Older Working Papers:
Brief Summary: Aggregate price flexibility as measured by the inflation-output tradeoff in an estimated forward looking New-Keynesian Phillips Curve rises with microeconomic volatility.

Matlab and Stata:  Code
Brief Summary: Allowing for price adjustment probabilities that vary with duration provides a better fit for observed price spells in micro data and increases monetary non-neutrality substantially.
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