19 citations · 26 across the 17 of their papers we have counts for
7 papers · 1 filter
Investor Experiences and International Capital Flows
Ulrike Malmendier, Demian Pouzo, Victoria Vanasco
We propose a novel explanation for classic international macro puzzles regarding capital flows and portfolio investment, which builds on modern macro-finance models of experience-b…
Investor Experiences and Financial Market Dynamics
Ulrike Malmendier, Demian Pouzo, Victoria Vanasco
How do macro-financial shocks affect investor behavior and market dynamics? Recent evidence on experience effects suggests a long-lasting influence of personally experienced outcom…
The Industry Supply Function and the Long-Run Competitive Equilibrium with Heterogeneous Firms
Ignacio Esponda, Demian Pouzo
In developing the theory of long-run competitive equilibrium (LRCE), Marshall (1890) used the notion of a representative firm. The identity of this firm, however, remained unclear.…
Sovereign Default Risk and Uncertainty Premia
Demian Pouzo, Ignacio Presno
This paper studies how international investors' concerns about model misspecification affect sovereign bond spreads. We develop a general equilibrium model of sovereign debt with e…
Optimal Taxation with Endogenous Default under Incomplete Markets
Demian Pouzo, Ignacio Presno
In a dynamic economy, we characterize the fiscal policy of the government when it levies distortionary taxes and issues defaultable bonds to finance its stochastic expenditure. Def…
Equilibrium in Misspecified Markov Decision Processes
Ignacio Esponda, Demian Pouzo
We study Markov decision problems where the agent does not know the transition probability function mapping current states and actions to future states. The agent has a prior belie…
Berk-Nash Equilibrium: A Framework for Modeling Agents with Misspecified Models
Ignacio Esponda, Demian Pouzo
We develop an equilibrium framework that relaxes the standard assumption that people have a correctly-specified view of their environment. Each player is characterized by a (possib…