Published or Forthcoming Papers

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1 Capital Income Jumps and Wealth Distribution, PDF, with Jess Benhabib and Wei Cui, conditionally accepted by Quantitative Economics

2 Dynamic Discrete Choice under Rational Inattention, PDF, with Hao Xing, forthcoming in Economic Theory.

3 Fiscal and Monetary Policy Interactions in a Model with Low Interest Rates, with Dongling Su, PDF, forthcoming in American Economic Journal: Macroeconomics.

4 Linear Quadratic Approximation of Rationally Inattentive Control Problems, PDF, with Bo Zhang, forthcoming in Macroeconomic Dynamics. Toolbox.zip

5 Asset Pricing under Smooth Ambiguity in Continuous Time, with Lars Hansen, PDF, Economic Theory 74 (2022) 335–371.

6 China's Housing Bubble, Infrastructure Investment, and Economic Growth, with Shenzhe Jiang and Yuzhe Zhang, PDF, International Economic Review 3 (2022) 1189-1237

7 Asset Market Equilibrium under Rational Inattention, PDF, with Dongling Su, forthcoming in Economc Theory.

8 Multivariate Rational Inattention, with Jieran Wu and Eric Young, PDF, Econometrica 2 (2022) 907-945.

A Matlab toolbox to solve dynamic RI problems in the LQG framework. PDF, ZIP

9 Asset Bubbles and Foreign Interest Rate Shocks, with Pengfei Wang and Jing Zhou, PDF, Review of Economic Dynamics 44 (2022) 315-348.

10 Macro-Financial Volatility under Dispersed Information, with Jieran Wu and Eric Young, PDF, Theoretical Economics 16 (2021) 275-315.

11 Does Calvo Meet Rotemberg at the Zero Lower Bound, with Phuong Ngo, PDF, Macroeconomic Dynamics 25 (2021) 1090-1111.

12 Discount Shock, Price-Rent Dynamics, and the Business Cycle, PDF, International Economic Review 61 (2020) 1229-1252.

13 Asset Bubbles and Monetary Policy, with Pengfei Wang and Feng Dong, PDF, Review of Economic Dynamics 37 (2020) S68-S98.

14 Convergence, Financial Development, and Policy Analysis, with Justin Yifu Lin and Pengfei Wang, PDF, Economic Theory 69 (2020) 523-568.

15 Ambiguity Aversion and Variance Premium, with Bin Wei and Hao Zhou, PDF, Quarterly Journal of Finance 9 (2019) 1-36.

16 Saving China’s Stock Market? With Yi Huang and Pengfei Wang, IMF Economic Review 67 (2019) 349-394. VoxEU.

17 Monetary Policy and Rational Asset Bubbles: Comments, with Pengfei Wang, and Zhouxiang Shen, PDF, American Economic Review 109 (2019) 1969-1990.

18 Aversion to Ambiguity and Model Misspecification in Dynamic Stochastic Environments, with Lars Peter Hansen, PDF, Proceedings of National Academy of Sciences 11 (2018) 9163-9168.

19 Asset Bubbles and Credit Constraints, PDF, with Pengfei Wang, American Economic Review 108 (2018) 2590-2628.

20 The Perils of Credit Booms, PDF, with Feng Dong and Pengfei Wang, Economic Theory 66 (2018) 819-861.

21 Woodford's Approach to Robust Policy Analysis in a Linear-Quadratic Framework, PDF, with Hyosung Kwon, Macroeconomic Dynamics 23 (2019) 1895-1920.

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

23 Robust Contracts in Continuous Time, PDF, with Alejandro Rivera, Econometrica 84 (2016) 1405-1440. Online Appendix

24 Land Prices and Unemployment, with Zheng Liu and Tao Zha, PDF, Journal of Monetary Economics 80(C) (2016) 86-105. Online Appendix

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

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

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

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

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

30 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

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

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

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

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

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

36 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)

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

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

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

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

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

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

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

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

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

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

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

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

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

50 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

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

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

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

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

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

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

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

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

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

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

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

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

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