Martin Gervais

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This paper studies the nature and impact of credit constraints in the market for human capital. We derive endogenous constraints from the design of government student loan programs and from the limited repayment incentives in private lending markets. These constraints imply cross-sectional patterns for schooling, ability, and family income that are(More)
Preliminary Abstract Personal bankruptcies in the United States have increased dramatically, rising from 1.4 per thousand working age population in 1970 to 8.5 in 2002. We use a heterogeneous agent life-cycle model with competitive financial intermediaries who can observe households' earnings, age and current asset holdings to evaluate several commonly(More)
Over the U.S. business cycle, fluctuations in residential investment are well known to systematically lead GDP. These dynamics are documented here to be specific to the U.S. and Canada. In other developed economies residential investment is broadly coincident with GDP. Nonresidential investment has the opposite dynamics, being coincident with or lagging(More)
ACKNOWLEDGEMENTS I thank my supervisor Alice Schoonbroodt. Her excellent guidance has made this dissertation possible. I also owe special thanks to my committee members: learned an incredible amount of Economics from other graduate students in the program: Michael J. Sposi, and Chander S. Kochar, as well as my other colleagues from the University of Iowa.(More)
Copyright and reuse: The Warwick Research Archive Portal (WRAP) makes this work of researchers of the University of Warwick available open access under the following conditions. Copyright © and all moral rights to the version of the paper presented here belong to the individual author(s) and/or other copyright owners. To the extent reasonable and(More)
This paper studies optimal taxation in a version of the neoclassical growth model in which investment becomes productive within the period, thereby making the supply of capital elastic in the short run. Because taxing capital is distortionary in the short run, the government's ability/desire to raise revenues through capital income taxation in the initial(More)
We propose a resolution to two important business cycle puzzles for the search-and-matching model of the labor market, namely: (a) the weak amplification of shocks to fluctuations in unemployment, and (b) the strong correlation of unemployment and labor productivity over the cycle. We focus attention on the implementation process of technological(More)
  • Facundo Albornoz, Héctor F Calvo Pardo, Gregory Corcos, Emanuel Ornelas, W We, Costas Arkolakis +19 others
  • 2009
Firms need to incur substantial sunk costs to break in foreign markets, yet many give up exporting shortly after their rst experience, which typically involves very small sales. Conversely, other new exporters shoot up their foreign sales and expand to new destinations. We investigate a simple theoretical mechanism that can rationalize these patterns. A rm(More)