Marco Bassetto - Published papers
Institution Building without Commitment (joint with Zhen Huo and José-Víctor Ríos-Rull)
American Economic Review, forthcoming.
A much older version is available as Organizational Equilibrium with Capital, NBER Working Paper no. 25376
A Ramsey Theory of Financial Distortions (joint with Wei Cui)
Journal of Political Economy, 2024, vol. 132, pp. 2612-2654.
An older version is available as Federal Reserve Bank of Minneapolis Staff Report no. 643
On the Mechanics of Fiscal Inflations (joint with Luca Benzoni and Jason Hall)
Quarterly Review, Federal Reserve Bank of Minneapolis, 2024, vol. 44, pp. 2-14.
Discussion of ‘Fiscal Federalism and Monetary Unions’ by Berriel, Gonzalez-Aguado, Kehoe, and Pastorino (joint with Jason Hall)
Journal of Monetary Economics, 2024, vol. 141, pp. 178-183.
Mathematica notebook containing code
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
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
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.
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.