Working Papers

Optimal Development Policies with Financial Frictions (with Oleg Itskhoki)
Also available as NBER Working Paper 19994

Experience Matters: Human Capital and Development Accounting
(with David Lagakos, Tommaso Porzio, Nancy Qian and Todd Schoellman)
Also available as NBER Working Paper 18602

The Dynamics of Inequality
(with Xavier Gabaix, Jean-Michel Lasry and Pierre-Louis Lions)
Related, just for fun: Pareto's 1896 formulation of his distribution
(see bottom/top p.304/305, eq (1), eq top of p.958. Pages from "Cours d'économie politique")

Economic Development and the Equilibrium Interaction of Financial Frictions
(with Robert M. Townsend and Victor Zhorin )

Heterogeneous Agent Models in Continuous Time
(with Yves Achdou, Jiequn Han, Jean-Michel Lasry and Pierre-Louis Lions)
Website with codes for numerical solution (how to solve the stationary equilibrium of a Bewley model in Matlab in half a second)

Optimal Control with Heterogeneous Agents in Continuous Time (with Galo Nuño)

Note: Inequality and Financial Development: A Power-Law Kuznets Curve


Papers in Progress

The Macroeconomy According to HANK (with Greg Kaplan and Gianluca Violante)

Published Papers

Why Does Misallocation Persist? (with Abhijit Banerjee)
American Economic Journal: Macroeconomics, Vol. 2, No. 1, January 2010.

Well-Intended Policies (with Francisco J. Buera and Yongseok Shin)
Review of Economic Dynamics, Special Issue on Misallocation, Vol. 16, No. 1, January 2013.

Knowledge Growth and the Allocation of Time (with Robert E. Lucas, Jr.)
Journal of Political Economy, Vol. 122, No. 1, February 2014.
MATLAB codes for computing Balanced Growth Paths described in Section 3

Productivity Losses from Financial Frictions: Can Self-financing Undo Capital Misallocation?
American Economic Review, October 2014, Vol. 104 No. 10
Online Appendix
Extra Appendix 1: The Model in Discrete Time and with iid Shocks
Extra Appendix 2: Closed Form Solution of a Neoclassical Growth Model with Capitalists and Workers
MATLAB code for computing transition dynamics described in Appendix C
Job market paper version (October 2010)

Aggregate Implications of a Credit Crunch: The Importance of Heterogeneity
(with Francisco J. Buera)
accepted, American Economic Journal: Macroeconomics

PDE Models in Macroeconomics
(with Yves Achdou, Francisco J. Buera, Jean-Michel Lasry and Pierre-Louis Lions)
Philosophical Transactions of the Royal Society A, 2014, 372 (2028), themed issue on “PDE Models in the Socio-Economic Sciences”
Economists may want to read this version with more economist-friendly notation.


Old Working Papers

Creditor Rights, Inequality and Development in a Neoclassical Growth Model

Capital Accumulation With Interdependent Countries