PUBLICATIONS
”Production and Inventory Dynamics Under Ambiguity Aversion”, with Yulei Luo, Jun Nie, and Eric Young, Journal of Monetary Economics, 152 (2025): 103767.
"Inattentive Capital Investment with Nonconvex Costs", Annals of Economics and Finance, 26.1(2025), 389-413.
WORKING PAPERS
" Rational Inattention and Real Exchange Rates", 2026, with Wei Li and Yulei Luo, Submitted
(This paper was presented at the 2019 Shanghai Macroeconomics Workshop, the 2019 and 2023 Financial Openness and Liberalization in Emerging Economies in Shanghai, and the Econometric Society 2023 Australasia Meeting.)
In this paper, we study households’ joint consumption–portfolio choice under limited information-processing capacity (rational inattention or RI) in a two-country general equilibrium model with Epstein–Zin recursive utility. Optimally inattentive households adjust gradually to asset-return shocks and internalize the induced long-run consumption risk, which compresses the volatility of stochastic discount factors and lowers their cross-country comove ment. Despite the high correlation of international equity returns, the model reproduces key international macro–finance facts: (i) substantially reduced correlation between relative consumption growth and real exchange rate depreciation (the Backus–Smith puzzle); (ii) smooth real exchange rate dynamics; and (iii) consumption growth that is smoother than real exchange rates.
"Diagnostic Expectations and Inventory Dynamics ", with Yulei Luo, Jianjun Miao, and Penghui Yin
“Ambiguity, Nonconvex Cost and the Distribution of Investment”
“Information Processing Constraint, Investment Under Uncertainty and Tobin’s q”
OTHER PUBLICATIONS
Centering on economic construction to stabilize general socioeconomic conditions while fully promoting economic recovery: Outlook, policy simulations, and reform implementation—A summary of the annual SUFE macroeconomic report (2022–2023), 2023, with Kevin X. D. Huang and Guoqiang Tian, International Studies of Economics, 18(1).