Shouyong Shi

Papers Under Review:

• • • "Post-Match Investment and Dynamic Sorting between Capital and Labor," 2018.

  • • "Efficient Investments, Job Dynamics and Frictional Dispersion," 2018.

  • • "Learning, On-the-Job Search and Wage-Tenure Contracts," (with Kevin Fawcett), 2018.

  • • "Long-Run Sectoral Reallocation, Job to Job Transitions, and Earnings Inequality: An Empirical Investigation," (with Florian Hoffmann and Anton Laptiev), 2016.

  Research Papers:

• • "Sequentially Mixed Search Equilibrium with Many-to-Many Meetings," 2018.

• • "Sectoral Shifts, Labor Mobility and Wage Inequality," (with Florian Hoffmann), 2009.

Publications In Peer-Refereed Journals:

1. "Sequentially Mixed Search and Equilibrium Price Dispersion," Journal of Economic Theory 213 (2023) 105735. (https://doi.org/10.1016/j.jet.2023.105735).

2. "Endogenous Procyclical Liquidity, Capital Reallocation, and q," (with Melanie Cao), International Economic Review 64 (2023), 95-128. (doi: 10.1111/iere.12594).

3. "Knowledge, Germs, and Output," Review of Economic Dynamics 48 (2023), 297-319. (https://doi.org/10.1016/j.red.2022.06.002). (Matlab codes: go to the bottom of this page; download the zip file: 2ladder-compute-share.zip; start with Readme1.txt).

4. "Wealth Accumulation, On the Job Search and Inequality," (with Gaston Chaumont), Journal of Monetary Economics 128 (2022), 51-71. (https://doi.org/10.1016/j.jmoneco.2022.03.009).

5. "Should Buyers Or Sellers Organize Trade in a Frictional Market?" (with Alain Delacroix), Quarterly Journal of Economics 133 (2018), 2171-2214.

   1. "Customer Relationship and Sales," Journal of Economic Theory 166 (2016), 483-516.

6. "Emission Taxes and Standards in a General Equilibrium with Productivity Dispersion and Abatement," (with Zhe Li), Macroeconomic Dynamics 21 (2017), 1857-1886.

7. "Burdett-Mortensen Model of On-the-Job Search with Two Sectors," (with Florian Hoffmann), Review of Economic Dynamics 19 (2016), 108-134.

8. "Liquidity, Assets and Business Cycles," Journal of Monetary Economics 70 (2015), 116-132.

9. "Financial Frictions, Investment Delay and Asset Market Interventions," (with Christine Tewfik), Journal of Money, Credit and Banking 47 (2015), 155-196.

10. "A Monetary Theory with Non-Degenerate Distributions," (with Guido Menzio and Amy Hongfei Sun), Journal of Economic Theory 148 (2013), 2266-2312.

11. "Liquidity, Interest Rates and Output," Annals of Economics and Finance 15 (2014), 53-95.

12. "Pricing and Signaling with Frictions," (with Alain Delacroix), Journal of Economic Theory 148 (2013), 1301–1332.

13. "Vehicle Currency," (with Michael B. Devereux), International Economic Review 54 (2013), 97-133.

14. "Liquidity, Innovation and Growth," (with Aleksander Berentsen and Mariana Rojas Breu), Journal of Monetary Economics 59 (2012), 721-737.

15. "Efficient Search on the Job and the Business Cycle," (with Guido Menzio), Journal of Political Economy 119 (2011), 468-510.

16. "An Equilibrium Theory of Learning, Search and Wages," (with Francisco M. Gonzalez), Econometrica 78 (2010), 509-537.

17. "Block Recursive Equilibria for Stochastic Models of Search on the Job," (with Guido Menzio), Journal of Economic Theory 145 (2010), 1453-1494.

18. "Directed Search on the Job, Heterogeneity, and Aggregate Fluctuations," (with Guido Menzio), American Economic Review: Papers and Proceedings 100 (2010), 327-332.

19. "Currency Areas and Monetary Coordination," (with Qing Liu), International Economic Review 51 (2010), 813-836.

20. "Directed Search for Equilibrium Wage-Tenure Contracts," Econometrica 77 (2009), 561-584.

21. "Efficiency Improvement from Restricting the Liquidity of Nominal Bonds," Journal of Monetary Economics 55 (2008), 1025-1037.

22. "Friedman Meets Hosios: Efficiency in Search Models of Money," (with Aleksander Berentsen and Guillaume Rocheteau), Economic Journal 117 (2007), 174-195.

23. "Viewpoint: A Microfoundation of Monetary Economics," Canadian Journal of Economics 39 (2006), 643-688.

24. "The Variability of the Velocity of Money in a Search Model," (with Weimin Wang), Journal of Monetary Economics 53 (2006), 537-571.

25. "Directed Search on the Job and the Wage Ladder," (with Alain Delacroix), International Economic Review 47 (2006), 651-699.

26. "Signaling in the Internet Craze of Initial Public Offerings," (with Melanie Cao), Journal of Corporate Finance 12 (2006), 818-833. An old version: "Publicity and the Clustering of IPO Underpricing," 1999.

27. "Wage Differentials, Discrimination and Efficiency," European Economic Review 50 (2006), 849-875.

28. "Nominal Bonds and Interest Rates," International Economic Review 45 (2005), 579-612.

29. "Frictional Assignment, Part II: Infinite Horizon and Inequality," Review of Economic Dynamics 8 (2005), 106-137.    Part I is "Frictional Assignment. I. Efficiency," Journal of Economic Theory 98 (2001), 232-260.   Some materials of both parts I and II appeared as: "Frictional Assignment", 1998.

30. "The Extent of the Market and Optimal Specialization," Economic Theory 25 (2005), 333-351.

31. "A Model of Bureaucracy and Corruption," (with Ted Temzelides), International Economic Review 45 (2004), 873-908.

32. "Search, Price Dispersion and Welfare," (with Brian Peterson), Economic Theory 24 (2004), 907-932.

33. "International Borrowing, Specialization, and Unemployment in a Small Open Economy," (with Patrick Osakwe), Review of International Economics 12 (2004), 41-59.

34. "A Fundamental Theory of Exchange Rates and Direct Currency Trades," (with Allen Head), Journal of Monetary Economics 50 (2003), 1555-1591.

35. "A Directed Search Model of Inequality with Heterogeneous Skills and Skill-Biased Technology," Review of Economic Studies 69 (2002), 467-491.

36. An earlier version: "Unskilled Workers in an Economy with Skill-biased Technology," 1998.

37. "Product Market and the Size-Wage Differential," International Economic Review 43 (2002), 21-54.

38. "Pricing and Matching with Frictions," (with Kenneth Burdett and Randall Wright), Journal of Political Economy 109 (2001, no.5), 1060-1085.

39. "Frictional Assignment. I. Efficiency," Journal of Economic Theory 98 (2001), 232-260.

40. "Liquidity, Bargaining, and Multiple Equilibria in a Search Monetary Model," Annals of Economics and Finance 2 (2001), 191-217.

41. "Screening, Bidding, and the Loan Market Tightness," (with Melanie Cao), European Finance Review 5 (2001), 21-61. (Renamed Review of Finance.)

42. "Bargains, Barter, and Money," (with Merwan Engineer), Review of Economic Dynamics 4 (2001), 188-209.

43. "Coordination, Matching, and Wages," (with Melanie Cao), Canadian Journal of Economics 33 (2000), 1009-1033.

44. "Innovation, Imitation, and Welfare-Improving Cycles," (with Patrick Francois), Journal of Economic Theory 85 (1999), 226-257.

45. "Search, Inflation, and Capital Accumulation," Journal of Monetary Economics 44 (1999), 81-103.

46. "Fashion and Wealth Accumulation," Economic Theory 14 (1999), 439-461.

47. "Labor Market Search and the Dynamic Effects of Taxes and Subsidies," (with Quan Wen), Journal of Monetary Economics 43 (1999), 457-495.

48. "Money, Capital, and the Redistributive Effect of Monetary Policies," Journal of Economic Dynamics and Control 23 (1999), 565-590.

49. "Search for a Monetary Propagation Mechanism," Journal of Economic Theory 81 (1998), 314-352.

50. "Asymmetry, Imperfectly Transferable Utility, and Fiat Money in Improving the Terms of Trade," (with Merwan Engineer), Journal of Monetary Economics 41 (1998), 153-183.

51. "Bargaining with Surplus Destruction," (with Lutz-Alexander Busch and Quan Wen), Canadian Journal of Economics 31 (1998), 915-932.

52. "Stochastic Relation between Money and Capital in an Economy with Spatially Separated Markets," Review of Economic Dynamics 1 (1998), 754-780.

53. "Money and Specialization," Economic Theory 10 (1997), 99-113.

54. "Labor Market Search and Capital Accumulation: Some Analytical Results," (with Quan Wen), Journal of Economic Dynamics and Control 21 (1997), 1747-1776.

55. "A Divisible Search Model of Fiat Money," Econometrica 65 (1997), 75-102.

56. "Credit and Money in a Search Model with Divisible Commodities," Review of Economic Studies 63 (1996), 627-652.

57. "Money and Prices: A Model of Search and Bargaining," Journal of Economic Theory 67 (1995), 467-496.

58. "Asymmetric Information, Credit Rationing, and Economic Growth," Canadian Journal of Economics 29 (1996), 665-687.

59. "Weakly Nonseparable Preferences and Distortionary Taxes in a Small Open Economy," International Economic Review 35 (1994), 411-428.

60. "Habits and Time Preference," (with Larry Epstein), International Economic Review 34 (1993), 61-84.

61. "Capital Accumulation and the Current Account in a Two-Country Model," (with Michael Devereux), Journal of International Economics 30 (1991), 1-25.

62. "Rothschild-Stiglitz Competitive Insurance Market under Quasi-linear Preferences," Economic Letters 27 (1988), 27-30.

63. "Rational Expectation Equilibrium under Quasilinear Preferences: A Diagrammatic Approach," Economic Letters 26 (1988), 107-110.

Other Publications:

• • "Liquidity Shocks and Asset Prices in the Business Cycle," 2012, in F. Allen, M. Aoki, J-P Fitoussi, N. Kiyotaki, R. Gordon and J.E. Stiglitz (eds.), The Global Macro Economy and Finance, pp118-130, Palgrave Macmillan, New York.

• • "Search Theory; New Perspectives," New Palgrave Dictionary of Economics, second edition, Macmillan, 2008.

• • "Tariffs, Unemployment, and the Current Account: An Intertemporal Equilibrium Model," 2001, in Money, Factor Mobility and Trade: Essays in Honor of Robert A. Mundell (pp.467-504), edited by Guillermo Calvo, Rudiger Dornbusch and Maurice Obstfeld, MIT press, Cambridge.

• • "Monetary theory and policy," 2002, in Xiandai Jingji Xue Yu Jingrong Xue Qianyan Fazhan (translation: The Frontiers and Recent Developments in Economics and Finance), pp131-209, edited by Guoqiang Tian, Shangwu Press, Beijing.

• • "The Research Agenda: Search Theory beyond the Matching Function," 2000, Newsletter 1 (issue 2), Society for Economic Dynamics.

• • "Discussion on Credit Crunch, Bank Lending, and Monetary Policy: A Model of Financial Intermediation with Heterogeneous Projects," 1999, in Money, Monetary Policy, and Transmission Mechanisms (pp. 341-345), edited by Kevin Clinton and Walter Engert, Bank of Canada, Ottawa.

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