Hongtao Hui


Working Paper

“What Assets Should the Central Bank Purchase in a Quantitative Easing Program” (Job Market Paper), with Francisco Ruge-Murcia

Abstract: This paper develops a multi-sector DSGE model to study large-scale asset purchases in an economy with heterogeneous production sectors and asks whether different asset purchases have different aggregate and sectoral effects. Sectors are heterogeneous in price rigidity, production function, and agency costs, and interact with each other in the market for intermediate goods. Results show that depending on the asset, purchases induce different sectoral responses from the interaction between price rigidity and agency costs. paper

Work in Progress