Working Papers Firm Uncertainty Cycles and the Propagation of Nominal Shocks (with Julio A. Blanco) PaperOnline AppendixSlides Heterogenous firm uncertainty is a key determinant of aggregate price flexibility and it amplifies the real effects of monetary shocks. *Previously circulated as Learning to Price.
Turbulence and Unemployment in Matching Models (with Lars Ljungqvist & Thomas Sargent) Paper When workers are exposed to the risk of skill obsolescence after a layoff or a voluntary quit, large unemployment benefits create more and longer unemployment.
Might Uncertainty Encourage International Trade? (with Laura Velkamp & Michael Waugh) PaperSlides If agents are risk averse and prudent, then asymmetric information between countries increases trade. *Previously circulated as Information Globalization, Risk Sharing, and International Trade.