Working Papers 

• The Spatial and Distributive Implications of Working-from-home: a General Equilibrium Model   

Abstract:   This paper studies the short- and long-run effects of the recent rise in remote work on households’ consumption, wealth, and housing decisions. In a general equilibrium dynamic spatial heterogeneous-agent model, the rise in work-fromhome increases the demand for space and reduces commuting costs, thus affecting residential location within the city and homeownership choices. Wealthy telecommuters opt for larger suburban homes, leading to a relative appreciation of these properties. Detailed real estate data for London confirms this model’s central prediction: the penalty for distance from the city center has fallen by 7.7%. Remote work accounts for half of this decline. In the short run, workers who cannot work remotely may realize capital gains by selling their suburban properties. In the long run, however, they are crowded out of homeownership and turn to renting. Workers who cannot telecommute experience welfare losses. 

VoxEU Talk

• Two-Tier Labor Markets and Durable Consumption: The Role of Risk Heterogeneity

Abstract: This paper examines the impact of two-tier labor markets on business cycle volatility through durable consumption choices. To analyze two-tier labor markets and risk heterogeneity, I focus on labor contracts. Using Italian panel data, I observe that during recessions, workers on fixed-term contracts reduce their durable consumption significantly more than their permanent counterparts. I use an incomplete market model of durable and non-durable consumption with a dual labor market, where durable consumption is subject to a non-convex adjustment cost. In this framework, I highlight the heterogeneous effects of changes in upside versus downside income risk on the magnitude and persistence of durable consumption adjustments. I also show that harmonizing contract types offers a promising tool for stabilizing the business cycle. 

Work In Progress 

• Countercyclical Consumption Taxes with Axelle Ferriere and Gaston Navarro

• Savings Choices in Debt Decisions with Paul Hubert and Frédérique Savignac

• Fiscal Policy with Heterogeneity in Durable Consumption with Albert Hidalgo and Ralph Luetticke

• Winners and Losers from Monetary Policy: Evidence from the UK Rental Market with Thomas Lazarowicz