We show that deterioration in household balance sheets, or the housing net worth channel,
played a significant role in the sharp decline in US employment between 2007 and 2009 …

Using a novel dataset, which merges good-level prices underlying the PPI with the
respondents' balance sheets, we show that liquidity constrained firms increased prices in …

We show that after monetary policy announcements, the conditional volatility of stock market
returns rises more for firms with stickier prices than for firms with more flexible prices. This …

Monetary policy shocks have a large impact on stock returns in narrow windows around
press releases by the Federal Reserve. We use spatial autoregressions to decompose the …

ABSTRACT A countercyclical markup of price over marginal cost is the key transmission
mechanism for demand shocks in textbook New Keynesian (NK) models. This paper re …

The frequency with which firms adjust output prices helps explain persistent differences in
capital structure across firms. Unconditionally, the most flexible-price firms have a 19 …

This paper examines the asset pricing implications of nominal rigidities. Firms that adjust
their product prices infrequently earn a return premium of 4% per year. Merging unique …

Employment and hours are more cyclical than dictated by productivity and consumption.
This intratemporal labor wedge can arise from product or labor market distortions. Based on …

We develop a tractable dynamic general equilibrium model of oligopolistic competition with
a continuum of heterogeneous industries. Industries are exposed to aggregate and industry …

We consider a matching model of employment with flexible wages for new hires but sticky
wages within matches. Unlike most models of sticky wages, we allow effort to respond if …