Journal ArticleReview of Economic Dynamics · December 1, 2023
We analyze optimal capital and labor taxes in a model where (i) the government makes noncontingent announcements about future policies and (ii) state-contingent deviations from these announcements are costly. With Full Commitment, optimal announcements coi ...
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Journal ArticleEconomic Journal · May 1, 2023
We study the role of new-product quality for the dynamics of durable-good expenditures around the Great Recession. We assemble a rich dataset on US new-car markets during 2004–12, combining data on transaction prices with detailed information about vehicle ...
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Journal ArticleAmerican Economic Review · February 1, 2023
We characterize efficiency in an equilibrium model of investment and capital reallocation with heterogeneous firms facing collateral constraints. The model features two types of pecuniary externalities: collateral externalities, because the resale price of ...
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Journal ArticleAmerican Economic Journal: Macroeconomics · January 1, 2023
What are the short-term effects of an import-competition shock on capital reallocation and aggregate productivity? To address this question, we develop a quantitative model with heterogeneous firms and capital-reallocation frictions. We discipline the mode ...
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Journal ArticleReview of Economic Studies · November 1, 2021
This article studies equilibrium dynamics in consumer durable goods markets after aggregate credit shocks. We introduce two novel features into a general-equilibrium model of durable consumption with heterogeneous households facing idiosyncratic income ris ...
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Scholarly Edition · September 1, 2018
This paper studies the business- cycle dynamics of secondary markets for physical capital and their effects on the macroeconomy. In the data, both capital reallocation and the price of used capital are procyclical. To rationalize these facts, I propose a m ...
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Scholarly Edition · 2017
This paper studies the role of capital specificity and investment
irreversibility on the distribution of marginal products of capital and
aggregate TFP. We use a methodology new to the misallocation literature,
based on the study of “mobility” across qu ...
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Scholarly Edition · September 26, 2016
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This paper studies optimal policy with partial information in a general setup where observed signals are endogenous to policy. In this case, signal extraction about the state of the economy cannot be separated from the determination of the optimal policy. ...
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Journal ArticleEconomic Research Initiatives at Duke (ERID) · January 17, 2016
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Capital reallocation is procyclical in the data, but countercyclical in standard business-cycle models. To solve this puzzle, I build a model of endogenous partial irreversibility, with heterogeneous firms facing aggregate and idiosyncratic productivity sh ...
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Scholarly Edition · 2014
This paper studies optimal policy in models with multidimensional
uncertainty and endogenous observables. We first consider a
very general setup where the policy-maker does not observe the realisations of
the shocks that hit the economy, but only some aggr ...
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