Chao He's Personal Website
  • Home

Chao He's Personal Website

图片

He who seeks finds.

Chinese Name: 何  超
Curriculum Vitae

Position:
Assistant Professor, 
School of Economics,
East China Normal University.


Contact Information:
A310b Science Building,
East China Normal University

hechaoecon@foxmail.com (main)
chhe@fem.ecnu.edu.cn

hechao1776@gmail.com

Research Interests: 
Macro, Monetary Econ, Labor, Housing

Publication:
"Housing and Liquidity" with Randall Wright and Yu Zhu, Review of Economic Dynamics, 2015, Volume 18, Issue 3, Pages 435-455, lead article.
"Complicated Dynamics in Simple Models of Liquidity" with Randall Wright, Journal of Money Credit, and Banking, 2019, Volume 51, Issue 6, Pages 1433-1453, lead article.


Working Papers:

"Hospital Runs," with Wanyi Chen, 2020
Hospital runs are devastating when mild-symptom patients crowd out severe-symptom ones. This paper studies a rushing game among mild-symptom patients. We characterize the condition of runs. There exist self-fulfilling hospital runs because seeking care early grants patients the priority in receiving treatment when their condition deteriorates.  Inefficient waiting can also happen as individuals ignore the social cost of future overload. With SIR dynamics, hospital runs could start long before the medical resources are insufficient for severe-symptom patients. Denying mild-symptom patients for treatment prevents the crowd-out but is worse than the optimal allocation when early treatment is effective enough.

“Money Allocation, Unemployment, and Monetary Policy,” with Min Zhang, 2020
Firms and consumers both hold significant amounts of money, and the firm money share changes over time and is negatively correlated with inflation. While existing studies of monetary policy and unemployment only consider consumer money, we build a framework of money allocation between consumers and firms. The results show that incorporating firm money greatly amplifies the effect of monetary policy on unemployment, and that an increase in inflation reduces the firm money share. The positive spillover effect from consumer money to firm money proves quantitatively important in accounting for changes in firm money.

"The Paradox of Search Effort and Rational Labor Stampedes," with Xiaodong Fan, 2019
Standard labor search and matching models feature procyclical search intensity and quick recoveries. Both predictions are at odds with the US labor market after the Great Recession. This paper shows that in an otherwise standard model that incorporates multi-market simultaneous search, a temporary financial crisis can raise both search intensity and unemployment persistently, like a stampede to an unemployment trap—workers search harder but end up discouraging job creation—even if only a fraction of workers can conduct simultaneous search. The observed productivity shocks reduce search effort and do not cause such hysteresis. Subsidizing entry costs can bring quick recovery.

"Financial Frictions, Liquidity Traps, and Monetary Policy," with Tiantian Dai, 2019
​To better understand liquidity traps, we explicitly model open market operations and standing facilities. With financial frictions, the model is consistent with the observed liquidity traps, and the zero nominal interest rate is the worst steady-state policy. We characterize dynamic exit strategies and show novel implications on monetary policy in normal times. The central bank interventions not just swap currency for bonds but also interact with financial frictions and create differential effects on borrowers and lenders. A lower nominal rate implies higher total liquidity but more misallocation. Policies that ignore financial frictions can lead to liquidity traps endogenously over time.

​"Money and Credit Revisited" with Han Han, 2019
Gu, Mettesini, and Wright (2016) show that when buyers can use both money and credit, money is essential only if credit is tight, then further decreases of credit are irrelevant. This paper shows that by additionally allowing indirect credit (i.e., borrowing money from third parties) – they only model direct credit (i.e., sellers allow buyers to pay later) – money can be essential even with unlimited indirect credit, then further decreases of either type of credit matter unless the nominal interest rate of loans is zero, because indirect credit restricts the adjustment of real balances.
​

"On Modeling Monetary Policy Implementation," with Tiantian Dai, 2018 
"On Nonlinear Effects of Inflation Across Countries," 2018

"Educational Policies, Pre-college Human Capital Investment and Educated Unemployment", with Tiantian Dai, Xiangting Hu and Xiangbo Liu, 2018
“Allocating Money Between Consumers and Firms,” with Min Zhang, 2019, available upon request.

​
​

Powered by Create your own unique website with customizable templates.
  • Home