(3) Aggregate Dynamics in Lumpy Economies (w/ Andrés Blanco) Econometrica (Forthcoming) PaperOnline Appendix Structural links between aggregate transitional dynamics, steady state cross-sectional moments, and micro data in lumpy economies, with an application to investment.
Working Papers Mismatch Cycles (with Ana Figueiredo&Robert Ulbricht) R&R at Journal of Political Economy During recessions, highly mismatched jobs are destroyed but also created. An equilibrium model of the labor market with directed search, multidimensional sorting, learning about skills, and aggregate shocks accounts for the cyclical dynamics of skill mismatch and occupational switching. Paper
Quit Turbulence and Unemployment (w/ Lars Ljungqvist & Thomas Sargent) 2nd round R&R at Economic Journal Paper When workers are exposed to the risk of skill obsolescence after a layoff or a voluntary quit, generous unemployment benefits create more and longer unemployment. *Previously circulated as Turbulence and Unemployment in Matching Models
Work in Progress
Self-Insurance in Turbulent Labor Markets (with Ana Figueiredo, Cristiano Mantovani, and Alireza Sepahsalari) The risk of human capital obsolescence decreases reemployment wages and increases savings and unemployment duration.
The Long Run Effects of Tax Policy on Investment Behavior (w/ Andrés Blanco) Structural links between the corporate tax system, capital misallocation, and the propagation of productivity shocks.
Policy Uncertainty and Sovereign Bond Markets (with Felix Matthys) Government bond yields are affected differentially by global and country-specific policy uncertainty factors.
Sleeping papers (for now) Price Duration and Passthrough (with Federico Kochen and Daniel Sámano) Exchange rate passthrough is larger for products with young (recently set) prices. Preliminary Draft
Optimal Monetary Instruments for an Uncertain World (with Donghai Zhang and Renbin Zhang)