(4) Bayesian Learning (w/ Laura Velkamp) Handbook of Economic Expectations (Forthcoming) Paper Learning is the process by which agents form beliefs. We survey the literature on Bayesian learning and consider the types of consequences these beliefs have on economic outcomes.
Working Papers The Macroeconomics of Partial Irreversibility (w/ Andrés Blanco) Paper Appendix We investigate the macroeconomic effects of partially irreversible investment arising from a wedge between the buying and selling price of capital and apply the theory to study corporate tax reforms. Corporate income tax cuts improve the allocation of capital, decrease aggregate Tobin's q, and slow down capital fluctuations. *Previously circulated as The Long-Run Effects of Corporate Tax Reforms
Returns to Labor Mobility: Layoff Costs and Quit Turbulence (w/ Lars Ljungqvist & Thomas Sargent) R&R at Economic Journal CEPR Working 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
Self-Insurance and Welfare in Turbulent Labor Markets (with Ana Figueiredo, Cristiano Mantovani, and Alireza Sepahsalari) Paper We investigate the welfare consequences of skill loss coinciding with involuntary layoffs on labour market outcomes in the presence of imperfect financial markets and search frictions Work in Progress
Monetary Policy and Corporate Tax Reforms (w/ Andrés Blanco and Erin Markiewitz) Paper Monetary policy rate increases following "long-run motivated" corporate income tax cuts.