Working Paper:
- The sectoral importance is driven by import shares (direct and indirect).
- Ignoring openness leads to overemphasis of sectors with more intensive export (direct and indirect).
Funded by RGC-GRF 1150823 (by Dec 2025, HKD 470,583) - Rational expectations can be rejected with consensus forecast data.
- Linear Gaussian models with misperceived information structure are also rejected.
- Forecasts of SPF are in favor of under-extrapolation and cognitive discounting but not reduced model complexity.
- Forecasts of MSC are unaware of basic autocorrelation and comovement in macroeconomic variables.
- The secret is to detect the inconsistency of forecast errors instead of the biases of them.
Funded by CityU Start-up Grant 7200696 (by June 2024, HKD 400,000)
- The model helps resolve the puzzle of countercyclical labor share in NK models via endogenous efficiency and markup wedges.
- Monetary Policy in Open Economies with Production Networks (slides) (with Yicheng Wang, Le Xu, and Francesco Zanetti), submitted
- The sectoral importance is driven by import shares (direct and indirect).
- Ignoring openness leads to overemphasis of sectors with more intensive export (direct and indirect).
Funded by RGC-GRF 1150823 (by Dec 2025, HKD 470,583) - Rational expectations can be rejected with consensus forecast data.
- Linear Gaussian models with misperceived information structure are also rejected.
- Forecasts of SPF are in favor of under-extrapolation and cognitive discounting but not reduced model complexity.
- Forecasts of MSC are unaware of basic autocorrelation and comovement in macroeconomic variables.
- The secret is to detect the inconsistency of forecast errors instead of the biases of them.
Funded by CityU Start-up Grant 7200696 (by June 2024, HKD 400,000)
- Procyclical Productivity in New Keynesian Models (slides) (with José-Víctor Ríos-Rull), R&R at Review of Economic Studies
- The model helps resolve the puzzle of countercyclical labor share in NK models via endogenous efficiency and markup wedges.
- Level-k DSGE and Monetary Policy, updated soon.
Work in Progress:
Funded by RGC-ECS 21501720 (by June 2024, HKD 543,900)
Funded by CityU-SRG 7005374 (Sep 2019-Feb 2022, HKD 100,000)
- The Entrepreneur Channel of Monetary Policy Transmission (with Yicheng Wang)
Funded by RGC-ECS 21501720 (by June 2024, HKD 543,900)
- Service Inflation and Missing Pass-Through (slides) (with Yicheng Wang and Le Xu)
- Industry Heterogeneity, Production Networks, and Monetary Policy (slides) (with Jianhong Xin and Le Xu)
Funded by CityU-SRG 7005374 (Sep 2019-Feb 2022, HKD 100,000)
Publications:
- 2013. “Housing and Saving with Finance Imperfection”, Annals of Economics and Finance 14(1): 207-248. (with Yanbin Chen and Fangxing Li)
Publications in Chinese:
- 2013. “The Impact of China’s Inflation on Wealth Inequality”, Economic Research Journal (经济研究) 48(8): 4-15. (with Yanbin Chen, Jun Chen and Weize Chen)
- 2011. “How does Housing Price Affect Household Saving Rate and Wealth Inequality”, Economic Research Journal (经济研究), 46(10): 25-38. (with Yanbin Chen)
- 2010. “Advance in Macroeconomics: Bewley Model”, Economic Research Journal (经济研究), 45(7): 141-151. (with Yanbin Chen and Fangxing Li)