Research
Publications
Global DSGE Models (with Wenlan Luo and Guangyu Nie)
February 2020, Review of Economic Dynamics Forthcoming
The GDSGE toolbox's online compiler and examples can be found on Cao, Luo, and Nie's GDSGE website
The Dynamics of Property Rights and Consent in Autocracies (with Roger Lagunoff)
March 2020, AEJ Micro Forthcoming
Uncovering the Effects of Zero Lower Bound with An Endogenous Financial Wedge (with Wenlan Luo and Guangyu Nie)
American Economic Journal: Macroeconomics, 2023, vol 15
Recursive Equilibrium in Krusell and Smith (1998)
Journal of Economic Theory, 2020, vol 186
GDSGE code for comparing finite agent and fully heterogenous agent economies (Online Appendix J) can be found on Cao, Luo, and Nie's GDSGE website
Optimal Collateralized Contracts (with Roger Lagunoff)
American Economic Journal: Microeconomics, 2020, vol 12
Financial Frictions, Investment and Tobin’s Q (with Guido Lorenzoni and Karl Walentin)
Journal of Monetary Economics, 2019, vol 103
Speculation and Financial Wealth Distribution under Belief Heterogeneity
The Economic Journal, 2018, vol 128
Awarded Royal Economic Society Best Paper Prize in 2019
GDSGE code for the model can be found on Cao, Luo, and Nie's GDSGE website
Saving and Dissaving with Hyperbolic Discounting (with Ivan Werning)
Econometrica, 2018, vol 86
Technological Revolutions and the Three Great Slumps: A Medium-Run Analysis (with Jean-Paul L'Huillier Bowles)
Journal of Monetary Economics, 2018, vol 96
Related Material: When is the Trend the Cycle? (with Jean-Paul L'Huillier Bowles and Donghoon Yoo)
The Fiscal Forward Guidance and a Resolution (with Matthew Canzoneri, Robert Cumby, Behzad Diba, and Wenlan Luo)
Journal of Economic Dynamics and Control, Special Issue on Fiscal and Monetary Policies, 2018, vol 89
Amplification and Asymmetric Effects without Collateral Constraint (with Guangyu Nie)
American Economic Journal: Macroeconomics, 2017, vol 9
GDSGE code for the model can be found on Cao, Luo, and Nie's GDSGE website
Persistent Heterogeneous Returns and Top End Wealth Inequality (with Wenlan Luo)
Review of Economic Dynamics, 2017, vol 26
Online Appendix I: Wealth Inequality in the Standard Neoclassical Growth Model
Replicating Materials (Stata and Matlab)
Innovation by Incumbents and Entrants (with Daron Acemoglu)
Journal of Economic Theory, 2015, vol 157
Racing Under Uncertainty: A Boundary Value Problem Approach
Journal of Economic Theory, 2014, vol 151
Working Papers
Dynamic Savings Choices with Disagreements (with Ivan Werning)
April 2016
Firm Growth Through New Establishments (with Henry Hyatt, Toshihiko Mukoyama, and Erick Sager)
February 2017
Real Exchange Rate Dynamics Beyond Business Cycles (with Martin Evans and Wenlan Luo)
February 2019
A Real Theory of Aggregate Demand Shortages (with Ehsan Ebrahimy)
May 2021
Power, Property Rights, and the Dynamics of Local Wealth Appropriation (with Roger Lagunoff and Yingqi Xu)
January 2022
Nonlinear Phillips Curve with Asymmetric Adjustment Cost (with Behzad Diba and Dongjae Lee)
January 2023