We present a dynamic two-country model in which military spending, geopolitical risk, and
government bond prices are jointly determined. The model is consistent with three empirical …

ABSTRACT I use nominal and real bond risks as new moments to discipline a New
Keynesian asset pricing model, where supply shocks, demand shocks, and monetary policy …

We develop a model that features costly market segmentation and financial repression to
link domestic and external sovereign debt with default. In a financially repressed economy, a …

This paper assesses whether the British public debt featured a convenience yield during the
Classical Gold Standard before World War I, as the US does in modern times. Our empirical …

This paper documents the importance of government debt in facilitating the development of
corporate bond markets. Using micro-level data from Brazil, I exploit variation in tenor …

This study assesses whether British public debt featured a convenience yield during the
Classical Gold Standard before World War I, as the US does in modern times. The empirical …

Public bonds earn liquidity premia, since they are generally more liquid than capital (r< MP
K-δ). This liquidity premium may push down interest rate smaller than growth rate (r< g). We …

This study develops a model examining government debt bubbles (r< g) in an open
economy. The model features financially constrained risk-sharing markets where …

I develop a macroeconomic model to analyze the market power that countries like Taiwan
and South Korea hold in the global semiconductor industry. Using this model, I assess the …