Faculty Advisors

Andrea Ferrero

My research focuses on the links between household debt & consumption, and the impact of downward nominal wage rigidity. In my Job Market Paper I develop a heterogenous agent model to investigate how households' leverage decisions affect non-durable consumption.


I will be attending the RES PhD Meetings in London (December 19-20, 2017) and the ASSA Meetings in Philadelphia (January 5-7, 2018).

Gross, I., Hansen, J., 2018. Commodity Price Volatility with Endogenous Natural Resources European Economic Review

Natural resource reserves are exogenous in models of small commodity exporters. We consider richer supply dynamics and model exploration and depletion. These are important for capturing the effects of commodity price shocks including a commodity currency and crowding-out of non-commodity activity. We also consider how welfare and the ranking of optimal monetary and taxation policies change. Without exploration or depletion, optimal monetary and taxation policies can efficiently stabilise the economy in response to commodity price shocks. However, when exploration and depletion are accounted for, changing interest rates to offset price shocks becomes inefficient. Using taxation policy, specifically an ad valorem royalty, remains efficient.

Paper: Anticipated Changes in Household Debt and Consumption

Areas of Expertise: Macroeconomics and Monetary EconomicsDownload Paper