We develop a new model of cycles and crises in emerging markets, featuring an occasionally binding borrowing constraint and stochastic volatility, and estimate it with quarterly data for Mexico since 1981. We propose an endogenous regime‐switching formulation of the occasionally binding...

We investigate long-run earnings responses to taxes in the presence of dynamic returns to effort. First, we develop a theoretical model of earnings determination with dynamic returns to effort. In this model, earnings responses are delayed and mediated by job switches. Second, using...

We construct a macroeconomic model based on household wealth preferences to identify the theoretical conditions under which full-employment and/or stagnation steady states hold. The theoretical conditions also specify the minimum level of inflation target that shifts the economy from stagnation...

We construct a macroeconomic model based on household wealth preferences to identify the theoretical conditions under which full-employment and/or stagnation steady states hold. The theoretical conditions also specify the minimum level of inflation target that shifts the economy from stagnation...

This dissertation consists of three essays on high frequency data, volatility, and disaster risk in macroeconomic modeling. In Chapter I, I verify a credit card transaction dataset for Austria and Germany. I use this dataset in Chapter II to investigate the weekly impact of financial market...