Publications:
1.Optimal attention and heterogeneous precautionary saving behavior [ CESifo Working Paper version]
Journal of Economic Dynamics and Control, 2021, 131, 104230
Summary: People with different levels of wealth pay different amounts of attention to the capital income risk and display heterogeneous precautionary saving behavior.
Working papers:
Expectation formation, rational inattention and behavioral macroeconomics
Navigating Fiscal Fog: Household Expectations in an Uncertain Fiscal Environment (with Junjie Guo, Li Tang, and Shihan Xie)
Revise and Resubmit at Journal of Economic Behavior and Organization
Summary: Fiscal policy uncertainty plays an important role in shaping households' macroeconomic expectations and consumption-saving decisions.
Nominal Rigidities, Rational Inattention, and the Optimal Monetary Policy (with Shengliang Ou, Donghai Zhang and Renbin Zhang)
Revise and Resubmit at Journal of Economic Theory.
Summary: Under rational inattention, central bank would optimally allocate larger (smaller) weight to sectors with more flexible (stickier) prices.
Summary: Consumption model with both labor and capital income risks, limited attention and recursive utility can help to explain consumption responses to the income risks and the relative volatility of consumption to income observed in the U.S. economy, and we also find that the welfare losses due to limited attention are insignificant.
4. Information acquisition, macroeconomic expectations, and economic behavior (with Markus Kontny)
Summary: Individual's attention allocation behavior depends on some certain characteristics and attention allocation affects expectation updating, forecasting bias and purchasing attitudes toward durable goods and home.
5. Diagnostic Expectations and Consumption Dynamics (with Jinting Guo and Yulei Luo)
Best paper award, WEHIA 2025
Summary: Diagnostic expectation due to representativeness heuristic can help explain the puzzling empirical consumption behavior: current consumption change responds positively to the current income shock, but negatively to the previous income shock (excess sensitivity puzzle).
Summary: Paying attention plays an important role in households' information acquisition and expectation formation, as well as their subjective model of macroeconomics.
China-related topics
Financial liberalization, innovation value, and firm R&D strategy (with Yang Ming, Hongguang Sui, Meng Wu, and Chun Yuan)
Summary: The Hong Kong-Mainland stock market connection programs significantly increase the market value of patents through an information channel. This financial liberalization policies also increase firms' R&D spendings and the scientific value of patents.
Regional Culture and Corporate Tax Avoidance (with Xinyu Cui, Chunxiao Geng, Hengzhen Liu, and Liyi Zhu)
Summary: The opportunistic culture of executive’s birthplace has significant influence in corporate tax avoidance.
Work in progress:
Ambiguity Aversion and Infrequent Durables Adjustment (with Yulei Luo and Chenchuan Shi)
Attention, information, and reference-dependent preferences
Diagnostic Expectations and Inventory Dynamics (with Yulei Luo, Jianjun Miao, and Xiaowen Wang)