Fields: Macroeconomics, Public Economics, Behavioral Economics.
Recent Topics: Fiscal Policy Uncertainty, Social Security, Dynamic Optimization Techniques, Behavioral Welfare Analysis.
The Cost of Uncertainty about the Timing of Social Security Reform (with Aspen Gorry and Sita Slavov).
Summary: We develop a methodology to study how uncertainty about the timing of the resolution of uncertainty affects economic decision making and welfare. As an example of the power of our framework, we analytically solve and simulate household decisions and welfare in a setting in which households don't know how or when Social Security is going to be reformed. Uncertainty about the timing and structure of Social Security reform is highly regressive: the very low income group from the 2013 Trustees Report (who earn 25 percent of the economy-wide average wage) experience a welfare loss that is about 3 times larger than those who earn the maximum taxable amount in each year of their career.
Risky Investment and Bank Bailouts (with Nick Guo and Jason Smith)
Preliminary draft is coming. Check back soon.
Summary: The purpose of this paper is to show that time-inconsistent preferences can serve as a justification for a social security program as long as households face a spread between the interest rates on borrowing and lending. The inclusion of this friction, in isolation, is analytically and quantitatively sufficient to generate this result.
Commitment and Welfare (with Scott Findley).
Summary: Welfare analysis in behavioral economics (e.g., hyperbolic discounting) is controversial. In this paper we attempt to resolve some of the controversy and help to build a firmer philosophical foundation for behavioral welfare analysis.
Time Inconsistency and Retirement Choice (with Scott Findley). Economics Letters, 2015.
Social Security is NOT a Substitute for Annuity Markets (with Nick Guo and Roozbeh Hosseini). Review of Economic Dynamics, 2014.
Roosevelt and Prescott Come to an Agreement (with Nick Guo). Macroeconomic Dynamics, 2014.
Time-Inconsistent Preferences and Time-Inconsistent Policies (with Nick Guo). Journal of Mathematical Economics, 2014.
Discount Functions and Self-Control Problems (with Scott Findley). Economics Letters, 2014.
Time Inconsistency and Retirement Planning (with Scott Findley). Economics Letters, 2013.
Time-Inconsistent Preferences and Social Security: Revisited in Continuous Time. Journal of Economic Dynamics and Control, 2011.
Optimal Irrational Behavior (with James Feigenbaum and Emin Gahramanov). Journal of Economic Behavior and Organization, 2011.
Optimal Irrational Behavior in Continuous Time (with James Feigenbaum). Journal of Economic Dynamics and Control, 2010.
Short-Term Planning and the Life-Cycle Consumption Puzzle (with David Aadland). Journal of Economic Dynamics and Control, 2007.
Fixed Endpoint Optimal Control (with Saket Pande). Economic Theory, 2005.