(6) Returns to Labor Mobility (w/ Lars Ljungqvist & Thomas Sargent) The Economic Journal (Conditionally Accepted) PaperAppendix Reliance on firm size dynamics and shocks intermediated through neoclassical production functions yields large returns to labor mobility that are robust to parameter perturbations, while the reliance on labor economics statistics to calibrate per-worker productivity processes can give rise to fragilities.
(1) Firm Uncertainty Cycles and the Propagation of Nominal Shocks (with Andrés Blanco) American Economic Journal: Macroeconomics (Vol. 11, No. 1, Jan 2019) Paper Appendix Firm idiosyncratic uncertainty is a key determinant of micro pricing behavior and aggregate price flexibility. Working Papers The Macroeconomics of Partial Irreversibility (w/ Andrés Blanco) R&R at Review of Economic Studies PaperAppendix 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. ERC Grant MacroTaxReforms.
Self-Insurance in Turbulent Labor Markets (with Ana Figueiredo, Cristiano Mantovani, and Alireza Sepahsalari) Paper We investigate the consequences of skill obsolescence on labor market outcomes when workers self-insure in the presence of imperfect financial markets and search frictions.
Work in Progress
Lumpy Forecasts (with Javier Turén) Draft coming soon! We document that professional forecasters adjust their inflation forecast in a lumpy way—periods of inaction followed by large adjustments. Using a fixed-event forecasting framework, we assess the learning speed and the effect of the consensus forecast and individual beliefs on forecast revisions’ extensive and intensive margins of forecast revisions.
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. ERC Grant MacroTaxReforms.
Corporate Taxes and Investment Frictions (w/ Andrés Blanco) We study how corporate taxation interacts with two investment frictions: fixed capital adjustment costs and partial irreversibility. ERC Grant MacroTaxReforms. The Data Economy: Tools and Applications (w/ Laura Veldkamp) Book forthcoming in 2024 at Princeton University Press
Dormant projects Policy Uncertainty and Sovereign Bond Markets (with Felix Matthys) Government bond yields are affected differentially by global and country-specific policy uncertainty factors.