Doesn't look like it based on my interview schedule.
Victor, your letter says you are RA.
Victor Luo from NWU
young AP at demand side here: true. realized only after inviting him. hope he can pull some aces out of his sleeve
Hi SD, you win top prize for assuming your result in a crazy appendix definition of equilibrium. Result: Kinked demand curve. Assumption: The kink is at the past price.
Macroeconomic dynamics with no dynamic decision making: A+
The job market already ended. My last post was deleted even though I did not talk any bad things about anybody. Here are some papers on monetary policy and fiscal policy that I find the most interesting (the weakness is very minimal in comparison to the strength of these papers). I am never into the literature on microfoundation for sticky price so I do not comment on Mongey (NYU) and Afrouzi (Austin).
1. Luo (Georgetown): a variation of HANK model with default and credit rating. Monetary policy can affect the economy through the consumer credit channel. Low interest rate environment gives more credit to high-risk households (who also have higher propensity to consume). The model is interesting as the credit rating for each household is endogenous.
Weakness: I do not like the default cost in the utility function.
2. Castro (NYU): Iacoviello (2005) model with impatient and patient households+ banking in Gertler & Karadi+ default. There are three inefficiencies in his model: the common sticky price and monopoly, the capital constraint (banking), the borrowing constraint (impatient households). He finds that the most effectively fiscal policy in the crisis is the equity injection for the banking sector (fix the second inefficiency). This is a very heavy computational paper with many occasionally binding constraints.
Weakness: A too big model that needs to be simplified to characterize the main mechanism. However, this highlights his computational skills.
3. Ngotran (SUNY): a NK model with the existence of both reserves and money. Money in his model is the deposit issued by the commercial banks. The central bank only controls the level of reserves and the federal funds rate. With the existence of reserves, loans and money supply, the model can discuss extensively about the quantitative easing and interest rate paid on reserves.
Weakness: His nonlinear-certainty equivalent method ignores all the uncertainties. The model needs to keep track reserves, deposits as the state variables.
4. Ari(Cambridge): (Bocola type model) sovereign risk affects negatively on the bank balance sheet+ bank run. The model might have multiple equilibria. The bad equilibrium happens when bad banks’ balance sheet accompanied by the depositors’ withdrawals. Liquidity injection has the unambiguous effect (ex-ante vs ex-post). The mechanism is very clear in this paper, which is hard to find in the macro now.
Weakness: I always have a mixed feeling about DSGE with sunspots.
Macro is more and more computational. The average number of state variables in the job market paper is about 4-6, which I do not know whether it is a good or bad signal for the macro in the future.