Working Papers

  1. Financial Crises, Debt Maturity, and Capital Controls [PDF]
    Overborrowing in short-term debt is especially severe because the repayment of short-term liabilities is larger than that of long-term liabilities in future constrained states, resulting in greater cost undervaluation of short-term financial obligations. Therefore, tightening of capital controls should tilt toward short maturities during financial crises.
  2. Quality of Public Governance and the Capital Structure of Nations and Firms

    [PDF | NBER WP] (with Shang-Jin Wei)

    Better institutional quality tends to promote a higher share of foreign direct investment and equity investment in total foreign liabilities, and a higher share of long-term debt within the debt/loan category.

  3. Real Exchange Rate and External Balance: How Important are Price Deflators?

    [PDF | IMF WP| slides] (with JaeBin Ahn, Rui Mano)

    Among real exchange rates deflated by various prices (CPI-, GDP deflator-, Unit Labor Cost-), only unit-labor-cost-based one shows significant negative correlation with external balance, and it can be rationalized by price and wage rigidity and intermediate goods trade.

  4. Extensive Margin Adjustment of Multi-product Firms and Stock Returns

    [PDF| IMF WP| slides] (with Carlos Carvalho, Gee Hee Hong)

    Product turnover helps firm to cope with shocks, therefore, it is associated with lower risk premium and lower excess equity return.

Work in Progress

  1. Capital Controls in Financial Crises: Inflow and Outflow
  2. Business Cycle Through the Lens of Product Turnover,  (with Carlos Carvalho, Gee Hee Hong)
Jing Zhou