In my research I investigate the phenomenon of corporate default, with a particular focus on the macroeconomic consequence of changes in the corporate bankruptcy law. In a first paper, I study the general equilibrium implications of changes in the corporate bankruptcy law in a firm dynamics model in which the default option replicates salient features of the U.S. Bankruptcy Code: distressed firms can voluntarily file either for liquidation (Chapter 7) or reorganization (Chapter 11). In a second paper I document a novel channel through which pro-creditor bankruptcy reforms can backfire when workers extract rents. In a third co-authored paper, I present a firm dynamic model where financial development account for a diverging trend between rising default rates and constant credit spreads that we document in the US data for the period 1980-2016. Ultimately, I am the first to propose a hardware approach to solve bellman equations via value function iteration using FPGA technology.
keywords
Computational Economics
Teaching
courses taught
ECON 2020 - Principles of Macroeconomics
Primary Instructor
-
Spring 2018 / Spring 2019
Provides an overview of the economy, examining the flows of resources and outputs and the factors determining the levels of income and prices. Explores policy problems of inflation, unemployment and economic growth.
