Gabriel Mihalache
International Economics

My name is Gabriel, I study topics in International Macroeconomics. My work centers largely around the consequences of sovereign default risk for the maturity structure of public debt, sectoral reallocation, capital accumulation, and fiscal-monetary interactions. I am an Assistant Professor of Economics at Stony Brook University since 2018. I received my PhD in 2016 from the University of Rochester. I am originally from Romania and this is how you pronounce my last name.

News: In early November I will discuss "Fiscal Consolidation and Debt Relief: Ex-ante (Front-loaded) vs. Ex-post (Back-loaded)" for the International Macro/Finance and Sovereign Debt Workshop in East Asia.

Publications

• "Sovereign Default Resolution Through Maturity Extension,"
  PDF DOI Code Bib
  
  Journal of International Economics, Volume 125C, 2020, ISSN 0022-1996

  Sovereign Default Resolution Through Maturity Extension (JIE, 2020)

  ×

  @article{MIHALACHE2020103326,
  title = "Sovereign default resolution through maturity extension",
  journal = "Journal of International Economics",
  volume = "125C",
  pages = "103326",
  year = "2020",
  issn = "0022-1996",
  doi = "https://doi.org/10.1016/j.jinteco.2020.103326",
  url = "http://www.sciencedirect.com/science/article/pii/S0022199620300453",
  author = "Gabriel Mihalache", }

  Close
• "Default Risk, Sectoral Reallocation, and Persistent Recessions,"
  PDF DOI Bib
  
  with Cristina Arellano and Yan Bai
  Journal of International Economics, Volume 112, 2018, ISSN 0022-1996

  Default Risk, Sectoral Reallocation, and Persistent Recessions (JIE, 2018)

  ×

  @article{ARELLANO2018182,
  title = "Default risk, sectoral reallocation, and persistent recessions",
  journal = "Journal of International Economics",
  volume = "112",
  pages = "182 - 199",
  year = "2018",
  issn = "0022-1996",
  doi = "https://doi.org/10.1016/j.jinteco.2018.01.004",
  url = "http://www.sciencedirect.com/science/article/pii/S0022199618300047",
  author = "Cristina Arellano and Yan Bai and Gabriel Mihalache", }

  Close
• "The Payment Schedule of Sovereign Debt,"
  PDF DOI Bib
  
  with Yan Bai and Seon Tae Kim
  Economics Letters, Volume 161, 2017, ISSN 0165-1765

  The Payment Schedule of Sovereign Debt (EL, 2017)

  ×

  @article{BAI201719,
  title = "The payment schedule of sovereign debt",
  journal = "Economics Letters",
  volume = "161",
  pages = "19 - 23",
  year = "2017",
  issn = "0165-1765",
  doi = "https://doi.org/10.1016/j.econlet.2017.09.003",
  url = "http://www.sciencedirect.com/science/article/pii/S0165176517303701",
  author = "Yan Bai and Seon Tae Kim and Gabriel Mihalache", }

  Close

Working Papers and In-Progress

• "Bargaining over Mandatory Spending and Entitlements," July 2020
  PDF Bib
  
  with Marina Azzimonti and Laura Karpuska

  Bargaining over Mandatory Spending and Entitlements

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  @unpublished{AZZIMONTI2020wp,
  author = "Marina Azzimonti and Laura Karpuska and Gabriel Mihalache", 
  title = "Bargaining over Mandatory Spending and Entitlements",
  note = "NBER Working Paper No. 27595",
  month = "7",
  year = "2020", }

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• "Deadly Debt Crises: COVID-19 in Emerging Markets," June 2020
  PDF VMACS Bib
  
  with Cristina Arellano and Yan Bai
  Media and General Audience: GlobalCapital, FRB Minneapolis, Stony Brook Magazine, U of Rochester

  Deadly Debt Crises: COVID-19 in Emerging Markets

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  @unpublished{ARELLANO2020bwp,
  author = "Cristina Arellano and Yan Bai and Gabriel Mihalache", 
  title = "Deadly Debt Crises: COVID-19 in Emerging Markets",
  note = "NBER Working Paper No. 27275",
  month = "5",
  year = "2020", }

  Close
• "Monetary Policy and Sovereign Risk in Emerging Economies (NK-Default)," Jan 2020
  PDF Bib
  
  with Cristina Arellano and Yan Bai
  Media and General Audience: FRB Minneapolis

  Monetary Policy and Sovereign Risk in Emerging Economies

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  @unpublished{ARELLANO2020wp,
  author = "Cristina Arellano and Yan Bai and Gabriel Mihalache", 
  title = "Monetary Policy and Sovereign Risk in Emerging Economies (NK-Default)",
  note = "NBER Working Paper No. 26671",
  month = "1",
  year = "2020", }

  Close
• "The Maturity and Payment Schedule of Sovereign Debt," Jun 2016
  PDF Bib
  
  with Yan Bai and Seon Tae Kim

  The Maturity and Payment Schedule of Sovereign Debt

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  @unpublished{BAI2016wp,
  author = "Yan Bai and Seon Tae Kim and Gabriel Mihalache", 
  title = "The Maturity and Payment Schedule of Sovereign Debt",
  note = "NBER Working Paper No. 20896",
  month = "6",
  year = "2016", }

  Close
• "Pricing Slow-Moving Debt Crises"

  We revisit the question of nominal sovereign debt sustainability in a setting with "slow-moving" debt crises and "fiscal fatigue," as in Lorenzoni-Werning (2019, AER), when bonds and CDSs are priced using a stochastic discount factor consistent with evidence on risk- and term-premia. We characterize the resulting term structure of default risk and reassess the scope for equilibrium multiplicity in generating crises.

• "The Dynamic Firm Under Shareholder Disagreement"
  with Alexis Anagnostopoulos and Eva Cárceles-Poveda

Resources

• Computation: Compilers, IDEs, languages, libraries for numerical methods
• Sovereign default reading list: key papers on quantitative models of (equilibrium) sovereign default

Teaching

All materials, including syllabi and recordings, are distributed via Blackboard. Class-specific office hours are listed in the syllabus. For other appointments, please email. Students, please use gabriel.mihalache@stonybrook.edu and include the class name in the subject. Thank you!

Spring 2021

• ECO 356 Topics: International Finance
• ECO 610 Advanced Macroeconomic Theory (PhD)

Fall 2020

• ECO 325 International Economics
• ECO 615 Advanced Macroeconomics Workshop (PhD)

Previously

• ECO 305 Intermediate Macroeconomic Theory
• ECO 531 Introduction to Computational Methods in Economics (MA)
• ECO 613 Computational Macroeconomics (PhD)