Kocherlakota’s Research Page (by topic)
Below, I list my research papers, divided (somewhat arbitrarily) into five topics:
asset pricing and portfolio choice
cycles and growth
dynamic contracting and dynamic games
money and banking
optimal taxation
Papers are listed in reverse chronological order within each topic. See vita for full citations. Some papers occur multiple times because they are related to multiple topics.
Asset Pricing and Portfolio Choice
"Household Heterogeneity and Asset Trade: Resolving the Equity Premium Puzzle in Three Countries," working paper, joint with L. Pistaferri, 2008.
"Injecting Rational Bubbles," Journal of Economic Theory, forthcoming.
"Household Heterogeneity and Real Exchange Rates," Economic Journal, joint with L. Pistaferri, 2007.
"Looking for
Evidence of Time-Inconsistent Preferences in Asset Market Data," Federal
Reserve Bank of
"The Effects of Moral Hazard on Asset Prices when Financial Markets are Complete," Journal of Monetary Economics, 1998.
"Testing the Consumption CAPM with Heavy-Tailed Pricing Errors," Macroeconomic Dynamics, 1997.
"Why Should Older
People Invest Less in Stocks than Younger People?" Federal Reserve Bank of
"The Equity Premium: It's Still A Puzzle," Journal of Economic Literature, 1996.
"Bubbles and Constraints on Debt Accumulation," Journal of Economic Theory, 1992.
"On Tests of Representative Consumer Asset Pricing Models," Journal of Monetary Economics, 1990.
"Disentangling the Coefficient of Relative Risk Aversion from the Elasticity of Intertemporal Substitution: An Irrelevance Result," The Journal of Finance, 1990.
"On the 'Discount' Factor in Growth Economies," Journal of Monetary Economics, 1990.
Cycles and Growth
"Creating Business
Cycles Through Credit Constraints," Federal Reserve Bank of
"Using Theory for Measurement: Measuring the Cyclical Behavior of Home Production," Journal of Monetary Economics, joint with B. F. Ingram and N. E. Savin, 1997.
"Is there Endogenous Long Run Growth? Evidence from the United States and the United Kingdom," Journal of Money, Credit, and Banking, joint with K. Yi, 1997.
"Consumption, Commitment and Cycles," Journal of Monetary Economics, 1996.
"A Simple Time Series Test of Endogenous vs. Exogenous Growth Models: An Application to the United States," Review of Economics and Statistics, joint with K. Yi, 1996.
"Can Convergence Regressions Distinguish Between Exogenous and Endogenous Growth Models?" Economic Letters, joint with K. Yi, 1995.
"Explaining Business Cycles: A Multiple Shock Approach," Journal of Monetary Economics, joint with B. F. Ingram and N. E. Savin, 1994.
Dynamic Contracting and Dynamic Games
"Nonseparable Preferences and Optimal Social Security Systems," working paper, joint with B. Grochulski, 2008.
"Household Heterogeneity and Asset Trade: Resolving the Equity Premium Puzzle in Three Countries," working paper, joint with L. Pistaferri, 2008.
"Household Heterogeneity and Real Exchange Rates," Economic Journal, joint with L. Pistaferri, 2007.
"Advances
in Dynamic Optimal Taxation," Advances
in Economics and Econometrics: Theory and Applications, Ninth World Congress,
Volume I, 2006.
"Finite Memory and Imperfect Monitoring," Games and Economic Behavior, joint with H. Cole, 2005.
"Figuring Out the Impact of Hidden Savings on Optimal Unemployment Insurance," Review of Economic Dynamics, 2004.
"Optimal Indirect and Capital Taxation," Review of Economic Studies, joint with M. Golosov and A. Tsyvinski, 2003.
"Efficient
Allocations with Hidden Income and Hidden Storage," Review of Economic Studies, joint with
H. Cole, 2001.
"Dynamic Games with Hidden
Actions and Hidden States," Journal
of Economic Theory, joint with H.
Cole, 2001.
"Implications of Efficient Risk Sharing without Commitment," Review of Economic Studies, 1996.
See also, “Differentiability of the Efficient Frontier when Commitment to Risk Sharing is Limited,” by Thorsten Koeppl of the European Central Bank for an important correction to the above paper.)
"Reconsideration-Proofness: A Refinement for Infinite Horizon Time Inconsistency," Games and Economic Behavior, 1996.
Money and
Banking
"Internal Debt Crises
and Sovereign Defaults," working paper, joint with C. Arellano, 2008.
"Forbearance and
Prompt Corrective Action, " Journal
of Money, Credit, and Banking, joint with I. Shim, 2007.
"Model
Fit and Model Selection," Federal
Reserve Bank of
"Optimal Monetary Policy: What We Know and What We Don’t Know," International Economic Review, 2005.
"Societal Benefits of Illiquid Bonds," Journal of Economic Theory, 2003.
"Money:
What's the Question and Why Should We Care About the Answer?" American Economic Review Papers and Proceedings, 2002.
(technical details: Money: What’s the Question and Why We Care About the Answer, December 2001).
"The
Two-Money Theorem," International
Economic Review, 2002.
"Risky Collateral and Deposit Insurance," Advances in Macroeconomics, 2001.
"A Signaling Model of Multiple Monies," Review of Economic Dynamics, joint with T. Krueger, 1999.
"Explaining the Fiscal Theory of the Price Level," Federal Reserve Bank of Minneapolis Quarterly Review, joint with C. Phelan, 1999.
"Money is Memory," Journal of Economic Theory, 1998.
"Incomplete Record-Keeping and Optimal Payment Arrangements," Journal of Economic Theory, joint with N. Wallace, 1998.
"The Technological Role of Fiat Money," Federal Reserve Bank of Minneapolis Quarterly Review, (based on "Money is Memory"), 1998.
"Zero Nominal Interest Rates: Why They're Good and How to Get Them," Federal Reserve Bank of Minneapolis Quarterly Review, joint with H. Cole, 1998.
"Bubbles and Constraints on Debt Accumulation," Journal of Economic Theory, 1992.
"The Variability of Velocity in Cash-in-Advance Models," Journal of Political Economy, joint with R. Hodrick and D. Lucas, 1991.
Optimal Taxation
"Nonseparable Preferences and Optimal Social Security
Systems," working paper, joint with B. Grochulski,
2008.
"On the Robustness of Laissez-Faire,” working paper, joint with C. Phelan, 2007.
"Advances in Dynamic Optimal Taxation," Advances in Economics and Econometrics:
Theory and Applications, Ninth World Congress, Volume I, 2006.
"Zero Expected Wealth Taxes: A Mirrlees Approach to Dynamic Optimal Taxation, " Econometrica, 2005.
"Optimal Monetary Policy: What We Know and What We Don’t Know," International Economic Review, 2005.
"Wedges
and Taxes" American Economic
Review Papers and Proceedings, 2004.
"On the Irrelevance of
Government Debt When Taxes are Distortionary,"
Journal of Monetary Economics, joint
with M. Bassetto, 2004.
"Optimal Indirect and Capital Taxation," Review of Economic Studies, joint with M. Golosov and A. Tsyvinski, 2003.