Working Papers

Inequality, Business Cycles, and Growth: A Unified Approach to Stabilization Policies, with Philipp Wangner (TSE), December 2022. NEW! [online appendix, SSRN]

  • In short: We develop a unified heterogenous agent New Keynesian growth framework. In this environment, the efficacy of stabilization policies fundamentally changes relative to the conventional wisdom that either neglects household heterogeneity, nominal rigidities, or long-run effects on technology growth. Our analysis provides a rationale to finance stabilizers by issuing government debt and/or by shifting the tax incidence on middle-class households.

Wealth, Returns, and Taxation: A Tale of Two Dependencies, with Philipp Wangner (TSE), August 2022. [online appendix, NBER slides, SSRN]

  • In short: We study wealth taxation when individual portfolio choices and associated returns are correlated with wealth through: (i) type dependence, i.e. investment skills drive return differences and (ii) scale dependence, i.e. wealth itself triggers returns. The macro and welfare implications of wealth taxation depend on the right tail of the wealth distribution, the degree of scale and type dependence, and the extent to which returns reflect investment productivity.

Value Added and Productivity Linkages Across Countries, with François de Soyres (FRB), August 2021, R&R at AEJ: Macro. [online appendix, slides, voxEU]

  • In short: IRBC models produce a weak relationship between trade and cross-country real GDP correlations, contradicting widespread empirical findings. We solve this puzzle by showing that whenever imported input’s base period price does not reflect their marginal revenue product real GDP movements become mechanically linked to fluctuations in imported inputs.

Gross Labor Market Flows, Self-Employment, and Unemployment Insurance, with Sumudu Kankanamge (TSE), July 2022. [online appendix]

  • In short: We document that the selection into self-employment is highly responsive to variations in unemployment insurance (UI) generosity. We develop an occupational choice model of employment, unemployment, and self-employment and show that changes in the relative riskiness between occupations is key to understand this high responsiveness.

Buying and Selling Entrepreneurial Assets, with Sumudu Kankanamge (TSE), June 2020.

  • TSE Working paper. An old version with application on the aging of entrepreneurs: SED 2019 Meeting, Slides.
  • In short: How are the options to buy and sell a business relevant for entrepreneurs? We introduce a theory of entrepreneurial assets transfer consistent with empirical evidence and quantify the importance of the market for businesses in the US.


Global Trade and GDP Comovement, with François de Soyres (FRB), May 2022, Journal of Economic Dynamics and Control. [WP version]

  • In short: This paper provides new empirical findings regarding the relationship between trade and cross-country GDP correlation using a large sample of countries. We introduce two notions of trade linkages: (i) direct bilateral trade index and (ii) common exposure to "third" countries capturing the role of trade networks.

Work In Progress

Housing-market Matching, Regional Mobility and Unemployment Insurance [Slides], with Christophe Bruneel (KU-Leuven).

    • Use a unique dataset comprising the whole universe of US housing transactions (105 million of housing units). Information on history of sales and price change, property tax change, and housing characteristics.

Facts on Business Transfers: Liquidity and Price Dynamics, with Sumudu Kankanamge (TSE).

    • ~100000 Business transactions (Small and Middle Sized Entreprises), with information in panel on reasons to sell, asking and selling price, capital (tangible & intangible), firm age.