• Wei Li's Homepage

    Ph.D. in Economics (HKU, 2016)

    Current Position

    Assistant Professor

    School of International Business Administration

    Shanghai University of Finance and Economics

    Research Interest

    Macroeconomics; International Finance

    Full Vitae

  • 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.

  • Working Papers

    Induced Uncertainty and Aggregate Wealth Accumulation

  • Work in Progress

    Model Uncertainty, Optimal Fiscal Policy and Endogenous Growth

    Volatility and Growth in China

    (with Gaofeng Han)

    Emerging Market Business Cycles Revisited with Robustness

    (with Yulei Luo, Jun Nie and Eric R. Young)

    Asset Market Dynamics, Cycles, and Crises

    (with Chi-Wa Yuen and Chi Pui Ho)