Working papers:
When Do Financial Frictions Matter for Misallocation? with Dan Lu, Xu Tian, and Yajie Wang, Revise and Resubmit at AEJ-Macro
Profits, Scale Economies, and the Gains from Trade and Industrial Policy: Comment, with Dan Lu and Hanxi Wang, October 2026
Trade Barriers and Sovereign Default Risk with George Alessandria, Minjie Deng, and Chang Liu, September 2026
Optimal Trade Policies and Market Power in General Equilibrium Trade Models, with Dan Lu and Hanxi Wang, updated September 2026
Financing from Workers: Can Labor Market Power Mitigate Financial Frictions? with Yajie Wang, March 2026
A Neoclassical Model of the World Financial Cycle, with Patrick Kehoe, Pierlauro Lopez, Fabrizio Perri, January 2025 (previous title "World Financial Cycles")
Unbalanced Trade: Is Growing Dispersion from Financial or Trade Reforms? with George Alessandria and Soo Kyung Woo, November 2024
Optimal Trade Policies and Labor Markets, with Dan Lu and Hanxi Wang, August 2024
Publications
Sovereign Default Risk and Firm Heterogeneity, with Cristina Arellano and Luigi Bocola, Journal of the European Economic Association, Volume 24, Issue 5, October 2026
Demand Shocks as Technology Shocks, with Jose-Victor Rios-Rull and Kjetil Storesletten, Review of Economic Studies, Volume 93, Issue 2, March 2026
Monetary Policy and Sovereign Risk in Emerging Economies (NK-Default), with Cristina Arellano and Gabriel Mihalache, accepted for publication, The Quarterly Journal of Economics, Volume 141, Issue 2, May 2026
Technological Rivalry and Optimal Dynamic Policy in an Open Economy, with Keyu Jin and Dan Lu, Journal of Political Economy Macroeconomics, Volume 3, Number 3, July 2025
Optimal Trade Policy with International Technology Diffusion, with Keyu Jin, Dan Lu, and Hanxi Wang, Journal of International Economics, Volume 153, 104038, January 2025
Misallocation under Trade Liberalization, with Keyu Jin and Dan Lu, American Economic Review 114.7 (2024): 1949-1985
Deadly Debt Crises: COVID-19 in Emerging Markets, with Cristina Arellano and Gabriel Mihalache, Review of Economic Studies 91.3 (2024): 1243-1290
COVID-19 Vaccination and Financial Frictions, with Cristina Arellano and Gabriel Mihalache, IMF Economic Review 71.1 (2023): 216:242
Migration and Sovereign Default Risk, with George Alessandria and Minjie Deng, 2020, Journal of Monetary Economics (Carnegie-Rochester-NYU Series on Public Policy)
Financial Frictions and Fluctuations in Volatility, with Cristina Arellano and Patrick Kehoe, 2019, Journal of Political Economy, 127(5): 2049-2103
Default Risk, Sectoral Reallocation, and Persistent Recessions, with Cristina Arellano and Gabriel Mihalache, 2018, Journal of International Economics 112: 182-199
The Payment Schedule of Sovereign Debt, with Seon Tae Kim and Gabriel Mihalache, 2017, Economics Letters
Fiscal Austerity during Debt Crises, with Cristina Arellano, November 2016, Economic Theory
Demand Shocks and Open Economy Puzzles, with Jose-Victor Rios-Rull, 2015, American Economic Review Papers and Proceedings, 105(5): 644-649
Renegotiation Policies in Sovereign Defaults, with Cristina Arellano, 2014, American Economic Review Papers and Proceedings, 104(5): 94-100
Discussion on "Gross Capital Flows: Dynamics and Crises" by Broner, Didier, Erce, and Schmukler, Journal of Monetary Economics, 60 (2013) 134-137
Financial Integration and International Risk Sharing, with Jing Zhang, 2012, Journal of International Economics 86, 17-32
Firm Dynamics and Financial Development, with Cristina Arellano and Jing Zhang 2012, Journal of Monetary Economics 59 (6)
Duration of Sovereign Debt Renegotiation, with Jing Zhang, 2012, Journal of International Economics 86 (2), 252-268
Solving the Feldstein-Horioka Puzzle with Financial Frictions, [Technical Appendix], with Jing Zhang, 2010, Econometrica 78(2), March 2010, 603-632, slides
Older working Papers
Do Financial Frictions Explain Chinese Firms' Saving and Misallocation? with Dan Lu, Xu Tian, 2018
Sovereign Risk Contagion, with Cristina Arellano and Sandra Lizarazo
The Maturity and Payment Schedule of Sovereign Debt, with Seon Tae Kim and Gabriel Mihalache, 2014