Over the past 20 years, China has experienced one of the most remarkable growth episodes in modern economic history which has been largely fueled by growth in total factor productivity (TFP). This rise followed major economic reforms that reduced barriers to entry on private businesses. China...

We develop a model of matching where participants have finite information processing capacity. The equilibrium of our model covers the middle ground between the equilibria of random matching and the directed search literatures and reproduces them as limiting cases. Our theory of targeted search...

The goal of this paper is to isolate the role of openness to international financial markets (capital account openness) on the total factor productivity (TFP) effect of financial frictions. To do so, I formulate a model in which individual households are either workers or entrepreneurs, can only...

Taxation affects the allocation of talented individuals across industries by blunting material incentives and thus relatively magnifying the non-pecuniary benefits of pursuing a "calling". If higher-paying industries (e.g. finance and management) generate less positive net externalities than...

We use the establishment of Special Economic Zones in China to estimate the effect of economic reforms on GDP. A panel of 270 Chinese cities from 1988 to 2010 allows us to exploit the variation in the establishment of zones across time and space. The results from our baseline fixed effects...

Economies tend to diversify and then re-specialize as they develop. In an economy with many industries that experience different rates of productivity growth, these "stages of diversification" may obtain if initial conditions are skewed away from the industries that dominate economic structure...

Dealers intermediate transactions between buyers and sellers in many markets. In particular this is true in nancial markets where many contracts are over-the-counter (OTC), especially derivatives: they are negotiated bilaterally and subject their users to the risk of counterparty default. Nearly...

We study the effects of trade integration for the conduct of monetary policy in a two-country model with heterogeneous firms, endogenous producer entry, and labor market frictions. The model reproduces important empirical regularities related to international trade, namely synchronization of...

How much can governments shift the cost of government expenditure from today's voters to tomorrow's generations of immigrants, without resorting to taxation that is explicitly discriminatory? I demonstrate that if their societies are absorbing continuous flows of new immigrants, we should expect...