Latest Research Highlights
Demand Elasticity in Dynamic Asset Pricing, 10/2025, with Peter Kondor and Jessica Li.
Standard method relying on exogenous residual supply shocks underestimates the slope of investors’ demand curves in dynamic settings. Via GE effects, supply shifts alter the very demand slope that econometricians seek to measure, because of i) endogenous risk (return covariance matrix) and ii) amplified intertemporal hedging. The underestimation is a factor of two-to-seven, with magnitude depending on shock persistence, size, and risk aversion.
Household Migration and Collateral Constraint: Cash-based Housing Resettlement in China, 08/2025, with Zehao Liu, Xinle Pang, Yang Su, and Kunru Zou.
In a dynamic spatial setting, endogenous location choices amplify the impact of Beijing’s liquidity injection policy on relaxing collateral constraints, leading to greater cross-sectional dispersion in housing prices and higher housing expenditures in China during 2016–2020.
Other Academic Appointments
- Executive Editor of Review of Asset Pricing Studies
- Special-term Alibaba Foundation Professor, School of Economics and Management, Tsinghua University
- Research Associate at National Bureau of Economic Research (NBER)
- Faculty Affiliate with Stanford Center on China’s Economy and Institutions
- Senior Fellow at Stanford Institute for Economic Policy Research
- Senior Fellow at Asian Bureau of Finance and Economic Research (ABFER)
- Member of Finance Theory Group (FTG)