Macroeconomics, information economics, and behavioral economics

Working Papers

• Optimal saving and the timing of the resolution of uncertainty in capital return  [SSRN]

• Summary: A temporal resolution of uncertainty model with rationally inattentive consumers helps to understand empirical facts of decreasing personal saving rate, increasing wealth inequality in US data since 1980s. 

• Income risks and optimal attention-consumption allocation (with Yulei Luo and Jun Nie )

•    Summary: consumption model with both labor and capital income risks, limited attention and recursive utility can help to explain consumption responses to the income risks and the relative volatility of consumption to income observed in the U.S. economy, and we also find that the welfare losses due to limited attention are insignificant.

• Information acquisition, macroeconomic expectations, and economic behavior (with Markus Kontny)

•    Summary: Individual's attention allocation behavior depends on some certain characteristics and attention allocation affects expectation updating, forecasting bias and purchasing attitudes toward durable goods and home.