Publications
Monetary Policy and Liquidity Constraints: Evidence from the Euro Area (with J. Gallegos, J. Kramer, R. Lima)
Accepted for publication at AEJ: Macroeconomics
Abstract: We quantify the relationship between the response of output to monetary policy shocks and the share of liquidity constrained households. We do so in the context of the euro area using a Local Projections Instrumental Variables estimation. We construct an instrument for changes in interest rates from changes in overnight indexed swap rates in a narrow time window around ECB announcements. Monetary policy shocks have heterogeneous effects on output across countries. Using micro data, we show that the elasticity of output to monetary policy is larger in countries that have a larger fraction of households that are liquidity constrained.
Work in progress
It Runs in the Family: Occupational Choice and the Allocation of Talent (with J.Kramer & J. Sigurdsson)
New Abstract coming soon.
How should I spend my time and money? A theory with home production that can account for the data
New draft coming soon.