Recent Working Paper:
Reference-dependent Preferences and Sentiment-driven Asset Prices, with Jess Benhabib, Zhaorui Li and Xuewen Liu, Feb 2025
R&R at the Journal of Finance
Inflation Disagreement Weakens the Power of Monetary Policy, with Ding Dong, Zheng Liu, and Min Wei, 2025 (FRBSF Working Paper Series: 2024-27 )
R&R at the Journal of Monetary Economics
Sentiment, Investor Sophistication, and Asset Bubbles, with Xuewen Liu and Zhongchao Yang, 2025
R&R at the Management Science
Asset Bubbles, R&D and Endogenous Growth, with Ding Dong and Jianjun Miao, 2025
Nominal Rigidities, Earnings Manipulation, and Securities Regulation, with Erica X.N. Li, Jin Xie and Ji Zhang, 2025
Uncertainty Paradox, with Zhen Huo, and Jing Zhou, 2025
Incomplete Information and Self-fulfilling Inflation Dynamics - Lucas meets Keynes, with Jess Benhabib and Yi Wen, 2024 (New Draft Coming Soon)
Misallocation and Asset Prices, with Winston Dou Wei, Di Tian and Ji Yan, 2024
Best Paper Award on Asset Pricing, Northern Finance Association (NFA), 2020
Growth and Cycles with Asset Bubbles: A Global Dynamics Approach, with Jess Benhabib, Feng Dong, and Zhenyang Xu, 2025
Reputation Cost of Price Cut: Modern Theory and Evidence for Price Stickiness, with Xuewen Liu, Hengxu Song, Zhongchao Yang, 2024
Uncertainty, Liquidity Constraint, and Entrepreneurship, with Daniel Xu, Sichuang Xu and Zhiwei Xu, 2022
A Theory of Credit Cycles in Pandemic, with Feng Dong and Zhiwei Xu, July 2021
Published Paper:
50. Aggregate Demand Externality and Self-Fulfilling Default Cycles, with Jess Benhabib, Feng Dong and Zhenyang Xu, Journal of Monetary Economics, Forthcoming
49. Turbulent Business Cycles, with Ding Dong and Zheng Liu, Journal of Monetary Economics, 2025
48. Asset Market Sentiments and Business Cycle Fluctuations, with Sichuang Xu and Xuewen Liu, International Economic Review, 2024
47. Delayed crisis and slow recovery, with Xuewen Liu, and Zhongchao Yang, Journal of Financial Economics, 2024
46. Can Monetary Policy Undo Asset-freezing Sanctions?, with Hengxu Song, China & World Economy, 2023
45. A Theory of Housing Demand Shocks, with Ding Dong, Zheng Liu, and Tao Zha, Journal of Economic Theory, 2022
44. Asset Bubble and Foreign Interest Rate Shocks, with Jianjun Miao and Jing Zhou, Review of Economic Dynamics, 2022
43. Interest rate liberalization and capital misallocations, with Zheng Liu and Zhiwei Xu, American Economic Journal: Macroeconomics, 2021
42. A Search-Based Neoclassical Model of Capital Reallocation, with Feng Dong, and Yi Wen, European Economic Review, 2020
41. Asset Bubbles and Monetary Policy, with Feng Dong, and Jianjun Miao, Review of Economic Dynamics, 2020
40. Discount shock, price–rent dynamics, and the business cycle, with Jianjun Miao and Tao Zha, International Economic Review, 2020
39. Financial Market, the Real Economy, and Self-fulfilling Uncertainties, with Jess Benhabib, and Xuewen Liu, Journal of Finance, 2019
38. Monetary Policy and Rational Asset Bubbles: Comments, with Jianjun Miao, and Zhouxiang Shen, American Economic Review, 2019
37 Convergence, Financial Development, and Policy Analysis, with Justin Yifu Lin and Jianjun Miao, Economic Theory, 2020
36. Saving China’s Stock Market, with Jianjun Miao, and Yi Huang, IMF Economic Review, 2019
35. The Peril of Credit Boom, with Jianjun Miao and Feng Dong, Economic Theory, 2018
34. Market Thickness and the Impact of Unemployment on Housing Market Outcomes, with Li Gan, and Qinghua Zhang, Journal of Monetary Economics, 2018
33. Asset Bubbles and Credit Constraints, with Jianjun Miao, American Economic Review, 2018
32. Trade, Sectorial Reallocation, and Growth, with Danyang Xie, Annals of Economics and Finance, 2018
31. Adverse Selection and Self-fulfilling Business Cycles, with Jess Benhabib and Dong Feng, Journal of Monetary Economics, 2018
30. Financial development and long-run volatility trends, with Zhiwei Xu and Yi Wen, Review of Economic Dynamics, 2018
29. Two-Way Capital Flows and Global Imbalances, with Zhiwei Xu and Yi Wen, Economic Journal, 2017
28. Uncertainty and Sentiment-Driven Equilibria, with Jess Benhabib and Yi Wen, Studies in Economic Theory series, Springer Verlag, 2017.
27. Endogenous Information Acquisition and Countercyclical Uncertainties, with Jess Benhabib and Xuewen Liu, Journal of Economic Theory, 2016
26. Sentiments, Financial Market, and Macroeconomic Fluctuations, with Jess Benhabib and Xuewen Liu, Journal of Financial Economics, 2016
25. Chaotic Banking Crises and Banking Regulations, with Jess Benhabib and Jianjun Miao, Economic Theory, 2016
24. Stock Market Bubbles and Unemployment, with Jianjun Miao and Lifang Xu, Economic Theory, 2016
23. Credit Search and Credit Cycles, with Dong Feng and Yi Wen, Economic Theory, 2016, Lead Article.
22. Asset Bubbles, Collateral, and Policy Analysis, with Jianjun Miao and Jing Zhou, Journal of Monetary Economics, 2015
21. A Bayesian DSGE Model of Stock Market Bubbles and Business Cycles, with Jianjun Miao and Zhiwei Xu, Quantitative Economics, 2015
20. Banking Bubbles and Financial Crisis, with Jianjun Miao, Journal of Economic Theory, 2015
19. Private Information and Sunspots in Sequential Asset Markets, with Jess Benhabib, Journal of Economic Theory, 2015
18. Sentiments and Aggregate Demand Fluctuations, with Jess Benhabib and Yi Wen, Econometrica, 2015
17. What inventories tell us about aggregate fluctuations --An Analytical Approach to (S,s) Policies, with Zhiwei Xu and Yi Wen, Journal of Economic Dynamics and Control, 2014
16. A Q-Theory Model with Lumpy Investment, with Jianjun Miao, Economic Theory, 2014
15. Sectoral Bubbles, Misallocation, and Endogenous Growth, with Jianjun Miao, Journal of Mathematical Economics, 2014
14. Lumpy Investment and Corporate Tax Policy, with Jianjun Miao, Journal of Money, Credit, and Banking, 2014
13. Credit Constraints and Self-fulfilling Business Cycles, with Zheng Liu, American Economic Journal: Macroeconomics, 2014
12. Financial Constraints, Endogenous Markups and Self-Fulfilling Equilibria, with Jess Benhabib, Journal of Monetary Economics, 2013
11. Land-Price Dynamics and Macroeconomic Fluctuation, with Zheng Liu and Tao Zha, Econometrica, 2013
10. Speculative Bubbles and Financial Crisis, with Yi Wen, American Economic Journal: Macroeconomics, 2012
9. Bubbles and Total Factor Productivity, with Jianjun Miao, American Economic Review, 2012
8. Hayashi meets Kiyotaki and Moore: A Theory of Capital Adjustment Costs, with Yi Wen, Review of Economic Dynamics, 2012
7. Understanding Expectation-Driven Fluctuations-A Labor-Market Approach, Journal of Money, Credit, and Banking, 2012
6. Volatility, Growth, and Welfare, with Yi Wen, Journal of Economic Dynamics and Control, 2011
5. Understanding the effects of technology shocks, with Yi Wen, Review of Economic Dynamics, 2011
4. Imperfect Competition and Indeterminacy of Aggregate Output, with Yi Wen, Journal of Economic Theory, 2008
3. Inflation Dynamics: A Cross-Country Investigation, with Yi Wen, Journal of Monetary Economics, 2007
2. Another Look at Sticky Prices and Output Persistence, with Yi Wen, Journal of Economic Dynamics and Control, 2006
1. Endogenous Money or Sticky Prices? Comment on Monetary Non-Neutrality and Inflation Dynamics, with Yi Wen, Journal of Economic Dynamics and Control, 2005