Working Papers:

Limited Firm Insurance and Aggregate Implications,   Revise & Resubmit, Management Science.  SSRN Link  for a previous version.

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

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 

Taxation and Entrepreneurship in the United States,  SSRN Link, 

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,

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,  to best reduce inefficiency, Monetary policy is quite different from standard ones.  Why? Sectors that intensively export  (directly, or indirectly through networks) should have less policy weight, even if they could have high inflation (i.e., large distortions)!

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 leasing on inefficiency in  competitive  equilibrium .  We show  leasing almost restores second best!

Publications:

(In Chinese,  Summary Paper)   无形资本研究的新进展, New Research Progress on Intangible Capital   [published version,  Journal Website],  经济学动态 （Economic Perspectives)， 07/2023.      

Income Volatility and Portfolio Choices, [published,   WP,  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) 

Brief 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,  [pdf, working paper]   with Jiseob Kim (Yonsei),              

Journal of Economic Dynamics and Control,  87 (2018),  124–151 

Brief 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

 [pdf,  working paper, appendix],     

Review of Economic Dynamics,   26 (2017),  19–39

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