Marco Bassetto - Published papers

A Ramsey Theory of Financial Distortions (joint with Wei Cui)

Journal of Political Economy, forthcoming.
An older version is available as Federal Reserve Bank of Minneapolis Staff Report no. 643
Replication Data
Online Appendix

Mobility, Population Growth, and Public Capital Spending in the United States (joint with Leslie McGranahan)

Review of Economic Dynamics, 2021, vol. 41, pp. 255-277. Special issue in honor of Alejandro Justiniano.
A significantly older version is available as NBER Working Paper no. 16970
Online Appendix
Code

Shotgun Wedding: Fiscal and Monetary Policy (joint with Thomas J. Sargent)

Annual Review of Economics, 2020, vol. 12, pp.659-690.
Free to download using the link above.

Forward Guidance: Communication, Commitment, or Both?

Journal of Monetary Economics, 2019, vol. 108, pp.69-86.
A version with some typos is available as Working Paper, Federal Reserve Bank of Chicago,  no. 2019-05
Online Appendix

Is Inflation Default? The Role of Information in Debt Crises (joint with Carlo Galli)

American Economic Review, 2019, vol. 109, pp.3556-3584.
An older version is available as Working Paper, Federal Reserve Bank of Chicago,  no. 2017-06

The Fiscal Theory of the Price Level in a World of Low Interest Rates (joint with Wei Cui)

Journal of Economic Dynamics and Control, special Fed St. Louis-JEDC-SCG-SNB-UniBern Conference on Fiscal and Monetary Policies, 2018, vol.89, pp.5-22 (lead article).

Speculative Runs on Interest Rate Pegs (joint with Christopher Phelan)

Journal of Monetary Economics, 2015, vol.73, pp.99-114. Open access.

Credit Crunches and Credit Allocation in a Model of Entrepreneurship (joint with Marco Cagetti and Mariacristina De Nardi)

Review of Economic Dynamics, special issue on Money, Credit, and Financial Frictions, 2015, vol. 18, n.1., pp.53-76. Open access.

Optimal Fiscal Policy with Heterogeneous Agents

Quantitative Economics, 2014, vol. 5, n.3, pp. 675-704. Open access.

Appendix for online publication
Working paper version (contains material that was not included in the published version)

Fiscal Consequences of Paying Interest on Reserves (joint with Todd Messer)

Fiscal Studies, 2013, vol. 34, n.4, pp. 413-436. Open access.

Forecasting Inflation and the Great Recession (joint with Todd Messer and Christine Ostrowski)

Economic Perspectives, Federal Reserve Bank of Chicago, 2013, vol. 37, n.3, pp.79-106. Open access.

What is the Relationship between Large Deficits and Inflation in Industrialized Countries? (joint with R. Andrew Butters)

Economic Perspectives, Federal Reserve Bank of Chicago, 2010, vol. 34, n.3, pp.83-100. Open access.

The Research Agenda: Marco Bassetto on the Quantitative Evaluation of Fiscal Policy Rules

Economic Dynamics Newsletter, 2009, vol. 10, n.2. Open access.

Tax Riots (joint with Christopher Phelan)

Review of Economic Studies, 2008, vol. 75, n.3, pp.649-669.
A slightly older version is available as Working Paper, Federal Reserve Bank of Chicago, 2006 n.4.

Fiscal Theory of the Price Level

The New Palgrave Dictionary of Economics, 2008, edited by Steven N. Durlauf and Lawrence E. Blume.
Author's original manuscript: this article is taken from the author's original manuscript and has not been reviewed or edited. Reproduced with permission.

Political Economy of Taxation in an Overlapping-Generations Economy

Review of Economic Dynamics, 2008, vol. 11, n.1, pp.18-43.
An earlier version is available as Federal Reserve Bank of Minneapolis Discussion Paper n. 133, 1999.

Government Investment and the European Stability and Growth Pact (joint with Vadym Lepetyuk)

Economic Perspectives, Federal Reserve Bank of Chicago, 2007, vol. 31, n.3, pp.33-43. Open access.
A more complete version is available as NBER Working Paper n. 13200, 2007.

Redistribution, Taxes, and the Median Voter (joint with Jess Benhabib)

Review of Economic Dynamics, 2006, vol.9, n.2, pp.211-223.
An earlier version (with some typos) is available as Working Paper, Federal Reserve Bank of Chicago, 2006 n.2.

Politics and Efficiency of Separating Capital and Ordinary Government Budgets (joint with Thomas J. Sargent)

Quarterly Journal of Economics, 2006, vol. 121, n.4, pp.1167-1210.
An older version is available as NBER Working Paper n. 11030, 2005.

Fiscal Policy and Price Stability: the Case of Italy 1992-98

Chicago Fed Letter, 2006, n.233. Open access.

Equilibrium and Government Commitment

Journal of Economic Theory, 2005, vol. 124, n.1, pp.79-105.
A slightly older version is available as Federal Reserve Bank of Minneapolis Working Paper no. 624, 2002.

On the Irrelevance of Government Debt when Taxes are Distortionary (joint with Narayana Kocherlakota)

Journal of Monetary Economics, 2004, vol. 51, n.2, pp.299-304.
Preprint version

Negative Nominal Interest Rates

This is a more detailed version of the paper published in the
American Economic Review (Papers and Proceedings), May 2004, vol. 94, n.2, pp.104-108.

A Game-Theoretic View of the Fiscal Theory of the Price Level

Econometrica, 2002, vol. 70., n.6, pp.2167-2195; an earlier version is available as Federal Reserve Bank of Minneapolis Working Paper no. 612, 2001.

Software code used in the papers above