Publications
Asymmetric Effects of Monetary Policy on Firms
Journal of Money, Credit and Banking, 2024
Working papers
Who Gains from Corporate Tax Cuts? (with James Cloyne and Paolo Surico) (Rej&R, Journal of Monetary Economics)
NBER Working Paper No.31278
Media Coverage: Forbes, Brookings Institute, LBS, American Experiment, National Affairs
Abstract: Goods producers increase their capital expenditure and employment in response to a cut in marginal corporate income tax rates or an increase in investment tax credits. In contrast, companies in the service sector mostly use any tax windfall to increase dividend payouts. We base our conclusions on a novel measure of U.S. firm-specific tax shocks that combines changes in statutory tax rates faced by each firm with narrative identified legislated U.S. federal tax changes between 1950 and 2006.
Corporate Taxes and Monetary Effectiveness: Evidence on Employment (Submitted)
Abstract: This paper analyzes narratively-identified statutory tax reforms in the US and show that the average impact of monetary policy on employment varies depending on the tax treatment firms receive. Specifically, I find that monetary policy is more effective on employment when firms face tax increases relative to the times when firms face stable taxes. Moreover, I show that monetary policy is least effective on employment when firms face marginal tax cuts. The empirical findings are rationalized using a New Keynesian model featuring capital and corporate income taxes.
-Finalist Paper for the Young Economists Prize by QCGBF
Downward Wage Rigidity and Asymmetric Effects of Monetary Policy (with Laura Jackson) (Submitted)
Abstract: This paper provides industry-level evidence on the presence of downward nominal wage rigidity and asymmetric effects of monetary policy in the US labor markets. Focusing on industry-level data from 1975q1 to 2020q4, we find strong evidence for the downward nominal wage rigidity (DNWR) channel in service-sector industries. Consistent with this channel, service-sector industries with downward-sticky (downward-flexible) wages show larger (muted) employment losses in response to monetary contractions. On the other hand, we find that the DNWR channel holds weakly in the manufacturing sector and we examine this in the context of trade integration policies of recent decades. Our results show that increasing exposure to the China shock weakens the DNWR mechanism for manufacturing industries.
Work in Progress
Corporate Tax Reforms and Monetary Policy (with Gonzalo Basante)
Political Instability and Long Run Growth in Eurasia (with K. Kıvanc Karaman)
-The Scientic and Technological Research Council of Turkey - TUBITAK - 3501 Program Fellowship Recipient, 2012-2014
Journal of Money, Credit and Banking, 2024
Working papers
Who Gains from Corporate Tax Cuts? (with James Cloyne and Paolo Surico) (Rej&R, Journal of Monetary Economics)
NBER Working Paper No.31278
Media Coverage: Forbes, Brookings Institute, LBS, American Experiment, National Affairs
Abstract: Goods producers increase their capital expenditure and employment in response to a cut in marginal corporate income tax rates or an increase in investment tax credits. In contrast, companies in the service sector mostly use any tax windfall to increase dividend payouts. We base our conclusions on a novel measure of U.S. firm-specific tax shocks that combines changes in statutory tax rates faced by each firm with narrative identified legislated U.S. federal tax changes between 1950 and 2006.
Corporate Taxes and Monetary Effectiveness: Evidence on Employment (Submitted)
Abstract: This paper analyzes narratively-identified statutory tax reforms in the US and show that the average impact of monetary policy on employment varies depending on the tax treatment firms receive. Specifically, I find that monetary policy is more effective on employment when firms face tax increases relative to the times when firms face stable taxes. Moreover, I show that monetary policy is least effective on employment when firms face marginal tax cuts. The empirical findings are rationalized using a New Keynesian model featuring capital and corporate income taxes.
-Finalist Paper for the Young Economists Prize by QCGBF
Downward Wage Rigidity and Asymmetric Effects of Monetary Policy (with Laura Jackson) (Submitted)
Abstract: This paper provides industry-level evidence on the presence of downward nominal wage rigidity and asymmetric effects of monetary policy in the US labor markets. Focusing on industry-level data from 1975q1 to 2020q4, we find strong evidence for the downward nominal wage rigidity (DNWR) channel in service-sector industries. Consistent with this channel, service-sector industries with downward-sticky (downward-flexible) wages show larger (muted) employment losses in response to monetary contractions. On the other hand, we find that the DNWR channel holds weakly in the manufacturing sector and we examine this in the context of trade integration policies of recent decades. Our results show that increasing exposure to the China shock weakens the DNWR mechanism for manufacturing industries.
Work in Progress
Corporate Tax Reforms and Monetary Policy (with Gonzalo Basante)
Political Instability and Long Run Growth in Eurasia (with K. Kıvanc Karaman)
-The Scientic and Technological Research Council of Turkey - TUBITAK - 3501 Program Fellowship Recipient, 2012-2014