Published or Forthcoming Papers



1      Convergence, Financial Development, and Policy Analysis, with Justin Yifu Lin and Pengfei Wang, PDF, forthcoming in Economic Theory.


2      Aversion to Ambiguity and Model Misspecification in Dynamic Stochastic Environments, with Lars Peter Hansen, PDF, forthcoming in Proceedings of National Academy of Sciences.


3      Ambiguity Aversion and Variance Premium, with Bin Wei and Hao Zhou, PDF, forthcoming in Quarterly Journal of Finance.


4      Monetary Policy and Rational Asset Bubbles: Comments, with Pengfei Wang, and Zhouxiang Shen, PDF, forthcoming in American Economic Review.


5      Asset Bubbles and Credit Constraints, PDF, with Pengfei Wang, forthcoming in American Economic Review.


6      Does Calvo Meet Rotemberg at the Zero Lower Bound, with Phuong Ngo, PDF, forthcoming in Macroeconomic Dynamics.


7      The Perils of Credit Booms, PDF, with Feng Dong and Pengfei Wang, forthcoming in Economic Theory.


8      Woodford's Approach to Robust Policy Analysis in a Linear-Quadratic Framework, PDF, with Hyosung Kwon, forthcoming Macroeconomic Dynamics.

9      Three Types of Robust Ramsey Problem in a Linear-Quadratic Framework, with Hyosung Kwon, Journal of Economic Dynamics and Control 76 (2017) 211-231.

10   Robust Contracts in Continuous Time, PDF, with Alejandro Rivera, Forthcoming in Econometrica. Online Appendix

11   Land Prices and Unemployment, with Zheng Liu and Tao Zha, PDF, Forthcoming in Journal of Monetary Economics. Online Appendix

12   Introduction to Economic Theory of Bubbles II, PDF, Journal of Mathematical Economics 65 (2016) 139-140.

13   Introduction to the Symposium on Bubbles, Multiple Equilibria, and Economic Activities, PDF, Economic Theory 61 (2016) 207-214.

14   Stock Market Bubbles and Unemployment, PDF, with Pengfei Wang and Lifang Xu, Economic Theory 61 (2016) 273-307.

15   Chaotic Banking Crises and Banking Regulations, PDF, with Jess Benhabib and Pengfei Wang, Economic Theory 61 (2016) 393-422.


16   Asset Bubbles, Collateral, and Policy Analysis, PDF, with Pengfei Wang and Jing Zhou, Journal of Monetary Economics 76 (2015) S57-S70.  Online Appendix

17   A Bayesian DSGE Model of Stock Market Bubbles and Business Cycles, with Pengfei Wang and Zhiwei Xu Quantitative Economics 6 (2015) 599-635. Supplementary Appendix

18   Banking Bubbles and Financial Crises, with Pengfei Wang, Journal of Economic Theory 157 (2015), 763-792. Online Appendix


19   Growth Uncertainty, Generalized Disappointment Aversion and Production-based Asset Pricing, PDF, with Hening Liu, Journal of Monetary Economics 69 (2015) 70-89.


20   A Duality Approach to Continuous-Time Contracting Problems with Limited Commitment, PDF, with Yuzhe Zhang, Journal of Economic Theory 159 (2015) 929-988.


21   Introduction to Economic Theory of Bubbles, Journal of Mathematical Economics 53 (2014), 130-136.


22  Sectoral Bubbles, Misallocation, and Endogenous Growth, with Pengfei Wang, Journal of Mathematical Economics 53 (2014), 153-163.


23  Dynamic Asset Allocation with Ambiguous Return Predictability, with Hui Chen and Nengjiu Ju, Review of Economic Dynamics 17 (2014), 799-823. (Best paper in 2009 CICF)


24   A Q-Theory Model with Lumpy Investment, with Pengfei Wang, Economic Theory 57 (2014), 133-159.


25   Lumpy Investment and Corporate Tax Policy, with Pengfei Wang, Journal of Money, Credit and Banking 46 (2014), 1171-1203.


26   Numerical Simulation of Nonoptimal Dynamic Equilibrium Models, with Zhigang Feng, Adrian Peralta-Alva, and Manuel Santos, International Economic Review 55 (2014), 83-110.


27   Advance Information and Asset Prices, with Rui Albuquerque, Journal of Economic Theory 149 (2014), 236-275.  Online Appendix.


28   What Does Corporate Income Tax Tax? A Simple Model without Capital, with Larry Kotlikoff, Annals of Economics and Finance 14-1 (2013) 1-19.


29   Economic Growth under Money Illusion, with Danyang Xie, Journal of Economic Dynamics and Control 37 (2013) 84-103.


30   CEO Power, Compensation, and Governance, with Rui Albuquerque, Annals of Economics and Finance 14-1 (2013) 21-56.


31   Bubbles and Total Factor Productivity, with Pengfei Wang, American Economic Review 102 (2012), 82-87. Online Appendix.


32   The Dynamics of Mergers and Acquisitions in Oligopolistic Industries, with Dirk Hackbarth, Journal of Economic Dynamics and Control 4 (2012), 585-609.


33   Ambiguity, Learning, and Asset Returns, with Nengjiu Ju, Econometrica 80 (2012), 559-591. Supplementary Material


34   The Determinants and Dynamic Properties of China’s Urban Housing Prices, Investment Research 7 (2011), 2-13. (in Chinese)


35   Intertemporal Substitution and Recursive Smooth Ambiguity Preferences, with Takashi Hayashi, Theoretical Economics 6 (2011), 423-472.


36   Risk, Uncertainty, and Option Exercise, with Neng Wang, Journal of Economic Dynamics and Control 35 (2011), 442-461.


37   Transitional Dynamics of Dividend and Capital Gains Tax Cuts, with Francois Gourio, Review of Economic Dynamics 14 (2011), 368-383. This is a substantial overhaul of the old version:  “Dynamic Effects of Permanent and Temporary Dividend Tax Policies on Corporate Investment and Financial Policies,” PDF. Media: The Fiscal Times,  The Washington Post


38   Firm Heterogeneity and the Long-Run Effects of Dividend Tax Reform, with Francois Gouriro, American Economic Journal: Macroeconomics 2:1 (2010), 131-168.


39   Entrepreneurial Finance and Non-Diversifiable Risk, with Hui Chen and Neng Wang, Review of Financial Studies 23 (2010), 4348-4388.


40   Ambiguity, Risk and Portfolio Choice under Incomplete Information, Annals of Economics and Finance, 10 (2009) 257-279.


41   Option Exercise with Temptation, Economic Theory 34 (2008), 473-501.


42   Investment, Consumption and Hedging under Incomplete Markets, with Neng Wang, Journal of Financial Economics 86 (2007), 608-642.


43   Capital Structure, Credit Risk, and Macroeconomic Conditions, with Dirk Hackbarth, and Erwan Morellec, Journal of Financial Economics 82 (2006), 519-550.


44   A Search Model of Centralized and Decentralized Trade, Review of Economic Dynamics 9 (2006), 68-92.


45   Competitive Equilibria of Economies with a Continuum of Consumers and Aggregate Shocks, Journal of Economic Theory 128 (2006), 274-298.


46   Irreversible Investment with Regime Shifts, with Xin Guo and Erwan Morellec, Journal of Economic Theory 122 (2005), 37-59.


47   Optimal Capital Structure and Industry Dynamics, Journal of Finance 6 (2005), 2621-2659.


48   Informed Trading when Information Becomes Stale, with Dan Benhardt, Journal of Finance 59 (2004), 339-390.


49   A Note on Consumption and Savings Under Knightian Uncertainty, Annals of Economics and Finance 5 (2004) 299-311.


50   A Two-Person Dynamic Equilibrium under Ambiguity, with Larry Epstein, Journal of Economic Dynamics and Control 27 (2003) 1253-1288.