"Long Term Government Bonds" abstract We study the impact of debt maturity on optimal fiscal policy by focusing on the case where the government issues a bond of maturity N > 1: Isolating these e ffects helps provide insight into the construction of optimal government debt portfolios. We find long bonds may not complete the…

"Market Reforms at the Zero Lower Bound" Abstract We study the impact of product and labor market reforms when an economy faces major slack and a binding constraint on monetary policy easing---such as the zero lower bound. To this end, we build a two-country two-final-goods model featuring endogenous producer entry, labor market frictions, and nominal…

"Human Capital, Unemployment Risk, and Asset Prices" Abstract This paper relates the riskiness of human capital to uncertainty in the labour market and documents a role for unemployment as a determinant of human wealth. Starting from the labour market equilibrium outcome, I derive two unemployment-adjusted measures of labour income and rely on U.S. micro-level data…

"Disentangling Overlapping Shocks in Portfolio Choices" abstract In a market where price shocks result from the sum of several mean-reverting shocks, this paper finds the optimal trading policies and their welfare for informed investors, who observe all individual shocks, and uninformed investors, who estimate them from the aggregate shock alone. All investors have constant relative…

"Latent-transition approach to evolution of household debt possession patterns"

"Scaling and Evolutionary Growth in a Macroeconomic Agent-Based Model" abstract I present a simple stock-flow consistent macroeconomic agent-based model for the production cycle, composed of firms, households and a financial sector. Competition of firms in the markets generates a stochastic process for firm evolution, which can be described theoretically. Results are several interrelated distributions for…