Working Papers:

Quantifying the Macroeconomic Impact of Credit Expansions,  SSRN Link,

with  Corina Boar (NYU), Matthew Knowles (Cologne) and Kjetil Storesletten (Minnesota)

Summary: Using banking deregulations in the US as natural experiments, we quantify different channels when credit market conditions change  by building and estimating 

a Heterogenous-Firm-New-Keynesian Model

Taxation and Entrepreneurship in the United States,  SSRN Link,   

Revise and Resubmit,  American Economic Journal: Macroeconomics 

with  Hans Holter (U. of Oslo, Delaware, and Nova) and Serhiy Stepanchuk (U. of Southampton)

Summary: This paper studies the effects of income taxation on entrepreneurship, both empirically and in a structural macro model with entrepreneurial choice. 

Foreign Price Shocks, Production Networks, and Monetary Policy,  Working paper   

with  Zhesheng Qiu (City U of Hong Kong),   Le Xu (Shanghai Jiao Tong U),   Francesco Zanetti (Oxford U) 

Summary: In an open economy with production networks, Monetary policy differs from standard ones to best reduce inefficiency.  Sectoral import and export behaviors, and their propagations via input-output linkages, are critical. Why?  A sector's policy weight should be smaller when its downstream sectors import intensively, as this sector contributes less to domestic output;  likewise for sectors that intensively export  (directly or indirectly through networks), since their distortions matter less to domestic welfare. Notable examples are those "export processing" sectors.

Leasing, Pecuniary Externality, and Aggregate Efficiency,  SSRN Link, 

with  Kai Li (Peking U),  Yiming Xu (Cambridge U)

Summary: For the first time, we study the impact of capital leasing options for firms, beyond capital purchasing,  on inefficiency in competitive equilibrium.  

We show  leasing almost restores the second best!

Allocative  Efficiency of Green Finance Instruments, SSRN Link, 

with  Kai Li (Peking U),  Chenjie Xu (SHUFE)

Summary: We provide a framework with heterogeneous firms and financial frictions to study the efficiency of different green instruments. 

We show it is important to consider the equilibrium allocation effects:  for example, Carbon tax may increase Total emissions in our framework but otherwise hard to understand.

Publications:

Limited Firm Insurance and Aggregate Implications,    Management Science,  Forthcoming. 

   SSRN Link  for the latest version, 05/2024. Working Paper 

Summary: little is known about the impacts of financial shocks on firms'  insurance to workers and in turn the aggregate implications.   

Income Volatility and Portfolio Choices, [Published Version PDF Link,   Working Paper,  Online Appendix], 2022.      

 Review of Economic Dynamics,  Volume 44, April 2022, Pages 65-90

with  Yongsung Chang (Seoul National U.), Jay H. Hong (Seoul National U.), Marios Karabarbounis (Richmond Fed),  Tao Zhang (Frisch data center) 

Summary:  Using administrative data from Norway, we identify the impact of idiosyncratic income volatility shocks on portfolios. A new quantitative structural model, with "shocks to the second moment",  is proposed to account for the findings and investigate welfare implications.

Macroeconomic and Distributional Effects of Mortgage  Guarantee Programs for the Poor,  [Published Version PDF Link, Working Paper]   

with Jiseob Kim (Yonsei),    Journal of Economic Dynamics and Control,  87 (2018),  124–151 

Summary: Using survey of consumer finance data (1989-2013) and based on a quantitative model, we find that those explicit government guarantee programs (e.g., FHA, VA, RHS) essentially provide insurance and redistribution only within low-income and low-asset households, and the unintended GE effects may hurt other home buyers.

Debt Market Friction, Firm-specific Knowledge Capital Accumulation  and Macroeconomic Implications,

 [Published Version PDF Link,  Working Paper, Online Appendix],      Review of Economic Dynamics,   26 (2017),  19–39

Summary: Compustat data suggests that debt market frictions affect firm-specific knowledge capital accumulation and output. Therefore, it provides a rationale for policy intervention.

无形资本研究的新进展, New Research Progress on Intangible Capital,  (In Chinese,  Summary Paper,  with 周伟岷) , 

  [Published Version PDF Link,  Journal Website],  经济学动态 （Economic Perspectives)，07/2023.      

互联网金融与中国行业间极端金融风险传播,  The impacts of Fintech on Sectoral shocks' transmissions,  (In Chinese, with 黄乃静, 史宇鹏, 于明哲)   

Journal of Management Sciences in China ,  管理科学学报,  2023, 26(4): 87-110.   Published Version PDF Link