• Wei Li's Homepage

    Ph.D. in Economics (HKU, 2016)

    Current Position

    Assistant Professor

    College of Business

    Shanghai University of Finance and Economics

    Research Interest

    Macroeconomics; International Finance

    Full Vitae

    CV (pdf) (updated 2020/03/22)

  • Publications

    Elastic Attention, Risk Sharing, and International Comovements, with Yulei Luo and Jun Nie (2017)

     

    Journal of Economic Dynamics and Control 79, 1-20 (Lead Article) (pdf) (ssrn)

     

    In this paper we examine the effects of elastic information-processing capacity (or optimal inattention) proposed in Sims (2010) on international consumption and income correlations in a tractable small open economy (SOE) model with exogenous income processes. We find that in the presence of capital mobility in financial markets, optimal inattention due to fixed information-processing cost lowers the international consumption correlations by generating heterogeneous consumption adjustments to income shocks across countries facing different macroeconomic uncertainty. In addition, we show that RI can also improve the model's predictions for the other key moments of the joint dynamics of consumption and income. Finally, we show that the main conclusions of our benchmark model do not change in an extension with capital accumulation.

    Trade, FDI and Global Imbalances, with Guangyu Nie and Zi Wang (2020)

     

    accepted by Journal of International Money and Finance (pdf) (ssrn)

     

    We propose a multi-country dynamic general equilibrium model to quantify the implications of trade and FDI liberalizations for the surge of global trade and current account (CA) imbalances. We calibrate our model to replicate the evolution of bilateral trade and FDI flows across 5 major economies as well as their CA balances over 1996-2014. Our counterfactual experiments suggest that the decline in trade and FDI costs accounts for about half of the increase in global trade imbalances and a quarter of the increase in CA imbalances over this period. Moreover, we find that the openness of the Chinese economy after 2001 has little impacts on global imbalances, whereas the unbundling of the U.S. outward FDI is a major driver of global imbalances.

  • Working Papers

    Induced Uncertainty and Aggregate Wealth Accumulation

  • Teaching

    Ph.D. Courses

    Advanced Macroeconomics I & II

    Master Courses

    Research Methodology

    Undergraduate Courses

    International Trade