I work in the areas of macroeconomics and international finance. Currently I am working on issues relating to the increase in cross-sectional inequality in the United States, on international risk-sharing, and on the dynamics of house prices.
Published Papers
Housing and the Business Cycle (with Morris A. Davis), International Economic Review (2005)
In the United States, the percentage standard deviation of residential investment is more than twice...
Two Views of Inequality over the Life-Cycle (with Kjetil Storesletten and Giovanni L. Violante), Journal of the European Economic Association (2005)
Data on the life-cycle profiles of inequality in wages, earnings, hours worked and consumption contains...
Fiscal Policy with Heterogeneous Agents and Incomplete Markets, Review of Economic Studies (2005)
I undertake a quantitative investigation into the short run effects of changes in the timing...
Financial Globalization and Real Regionalization (with Fabrizio Perri), Journal of Economic Theory (2004)
Over the period 1972-1986, the correlations of GDP, employment and investment between the United States...
On the Distributional Effects of Reducing Capital Taxes (with David Domeij), International Economic Review (2004)
We investigate the welfare implications of changing the mix between capital and labor taxes for...
Submitted Papers
Dollarization and Financial Integration (with Cristina Arellano) (2007)
How does a country’s choice of exchange rate regime impact its ability to borrow from...
The Price and Quantity of Residential Land in the United States (with Morris A. Davis) (2006)
One can conceptualize a house as a bundle comprising a reproducible tangible structure and a...
Insurance and Opportunities: The Welfare Implications of Rising Wage Dispersion (with Kjetil Storesletten and Giovanni L. Violante) (2006)
This paper provides an analytical characterization of the welfare effects of changes in cross-sectional wage...
The Macroeconomic Implications of Rising Wage Inequality in the United States (with Kjetil Storesletten and Giovanni L. Violante) (2004)
This paper explores the macroeconomic and welfare implications of the dramatic recent rise in wage...
Work in Progress
Consumption and Labor Supply with Partial Insurance: An Analytical Framework (with Kjetil Storesletten and Giovanni L. Violante) (2007)
This paper develops an analytical framework to study consumption and labor supply in a rich...
The International Diversification Puzzle is Not as Bad as You Think (with Fabrizio Perri) (2004)
In the data country portfolios are heavily biased toward domestic assets. Standard one-good international macro...
Interest Rates in a General Equilibrium Baumol-Tobin Model (1998)
This paper is a version of Romer’s general equilibrium interpretation of the Baumol-Tobin model. It...