Andres Blanco
Research Economist and Associate Advisor Federal Reserve Bank of Atlanta
Visiting professor at Emory University
Office: Federal Reserve Bank of Atlanta
1000 Peachtree Street, NE
9th Floor, Room 9.380
Atlanta, GA, 30309
Email: julioablanco84@gmail.com
I am a macroeconomist working on the aggregate implications of frictions at the micro-level. My research agenda aims to answer policy-relevant questions by providing measurements of new facts, developing theories, and testing their quantitative relevance.
Disclaimer: The views on this wedsite are my own and not those of hte Federeal Reserve System or the Federal Reserve Board.
Working papers
The Macroeconomics of Partial Irreversibility (with Isaac Baley, first draft: October 2020) R&R at Review of Economic Studies
We investigate the macroeconomic effects of partially irreversible investment arising from a wedge between the buying and selling price of capital and apply the theory to study corporate tax reforms. Corporate income tax cuts improve the allocation of capital, decrease aggregate Tobin's q, and slow down capital fluctuations.
A Theory of Labor Markets with Inefficient Turnover (with Andres Drenik, Christian Moser, and Emilio Zaratiegui, first draft: June 2022)
We develop a theory of quits and layoffs with search frictions, idiosyncratic and aggregate shocks, sticky wages, and two-sided lack of commitment.
Nonlinear Inflation Dynamics in Menu Cost Economies (with Corina Boar, Callum Jones, and Virgiliu Midrigan, first draft: December 2022)
We show that canonical menu cost models cannot reproduce the extent to which the fraction of price changes increases with inflation. We resolve it by extending the standard multi-product menu cost model along two dimensions: strategic complementarities are at the firm level, and products a firm sells are imperfect substitutes.
How Does Inflation "Grease the Wheels" in a Frictional Labor Market? (with Andres Drenik, first draft: July 2023)
We unify a theory of frictional labor markets with a theory of nominal wage adjustment. The model features worker heterogeneity, endogenous quits and layoffs, on-the-job search, and on-the-job wage renegotiation. We parametrize the model to match important features of the wage change distribution in microdata and use it to reproduce the anatomy of the labor market during Argentina's 2001 inflation episode.
5. The Inflation accelerator (with Corina Boar, Callum Jones, and Virgiliu Midrigan, first draft: June 2024)
We develop a tractable sticky price model in which the frequency of price changes evolves endogenously over time and reduces to a one-equation extension of the Calvo model. Applied to the U.S., our model predicts that the slope of the Phillips curve ranges from 0.02 in the 90' to 0.20 in the 70's and 80'.
6. Nonlinear Dynamics in Menu Cost Economies? Evidence from U.S. Data (with Corina Boar, Callum Jones, and Virgiliu Midrigan, first draft: July 2024)
Standard menu cost models cannot simultaneously reproduce the dispersion in the size of price changes and the increases in the frequency of price in the U.S. time-series.
7. A Theory of How Workers Keep Up With Inflation (with Hassan Afrouzi, Andres Drenik, and Erik Hurst, first draft: August 2024)
Develop a model of frictional labor markets with nominal rigidities. We show that the model matches worker flows and nominal wage changes during 2021-2024 with an isolated inflation surge.
Views are my own and do not necessarily reflects those of the Board of Governors or the Federal Reserve System