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WONTAE HAN Department of Economics University of Wisconsin-Madison 7234 Sewell Social Science Building 1180 Observatory Drive Madison, WI 53706

Cell: (608) 338-2478 [email protected] https://sites.google.com/site/econhanwt/

Placement Coordinators Prof. Jack Porter Parnian Abunasr-Shiraz

Director Administrator

(608) 263-3870 (608) 265-9092

[email protected] [email protected]

Research Fields International Macroeconomics, Optimal Monetary Policy in Open Economies

Education University of Wisconsin-Madison Ph.D. in Economics

expected 2018

University of Wisconsin-Madison M.S. in Economics

2013

Yonsei University M.A. in Economics B.S. in Electrical and Electronic Engineering (minor in Economics) High Honors

2009 2007

Research Papers Business and Credit Cycles in Emerging Economies: the Role of Financial Frictions Optimal Monetary Policy under Imperfect Risk-Sharing and Firms’ Pricing-to-Market

Work in Progress Macroprudential Policy and International Risk Sharing

Work Experience Research Assistant 2013 - 2015

Assisted Javier Bianchi (FRB, Minneapolis) for the Project, “Capital Flow Management when Capital Controls Leak.”

Project Assistant Summer 2013 2009 - 2010

Assisted Dean Corbae (UW-Madison) for the Project, “Modeling Bank Industry Dynamics,” Bank of Norway Minicourse. Participated in KIKO (Knock-In Knock-Out foreign-exchange derivative) Project of ByoungSeon Choi (Seoul National University), Jaesun Noh (Bank of Montreal), and Robert Engle (NYU-Stern School of Business).

Teaching Assistant Fall Spring Fall Spring Fall Spring Fall

2016 2016 2015 2013 2012 2012 2011

UW-Madison, UW-Madison, UW-Madison, UW-Madison, UW-Madison, UW-Madison, UW-Madison,

Math 320: Linear Algebra and Differential Equations Math 213: Calculus and Introduction to Differential Equations Math 211: Business Calculus Econ 302: Intermediate Macroeconomics Econ 302: Intermediate Macroeconomics Econ 101: Principles of Microeconomics Econ 101: Principles of Microeconomics

Seminar Presentation Fall Spring Fall Spring

2017 2017 2016 2016

UW-Madison, UW-Madison, UW-Madison, UW-Madison,

Workshop Workshop Workshop Workshop

in in in in

International International International International

Economics Economics Economics Economics

Honors and Awards 2010 - 2011

2007

A department fellowship for the first year of study in the Department of Economics at the UW-Madison. Administrative Assistantship scholarships and BK21 (Brain Korea 21) scholarships at Yonsei University. High Honors (Magna cum laude), Yonsei University

Fall 2006 Spring 2006 Fall 2005

High Honors Student Award, Yonsei University Highest Honors Student Award(in top 1% of class), Yonsei University Honors Student Award, Yonsei University

2007 - 2009

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Language and IT Skills Language Korean English German

Native speaker Fluent Basic (Major in German at Myungduk Foreign Language High School, Mar.1997 - Feb.2000)

IT Operating systems Programming languages Statistics & Econometrics

Windows, Linux Fortran, Matlab, C/C++ Stata

Additional Information Citizenship Military Service

Republic of Korea KATUSA, SGT, 8th U.S. Army HHC S4 TRANS, Jun.2003 - Jun.2005

REFERENCES Charles Engel (Chair) Hester Professor of Economics Department of Economics University of Wisconsin 1180 Observatory Drive Madison, WI 53706-1393 (608) 262-3697 [email protected]

Kenneth D. West John D. MacArthur and Ragnar Frisch Professor of Economics Department of Economics University of Wisconsin 1180 Observatory Drive Madison, WI 53706-1393 (608) 262-0033 [email protected]

Enghin Atalay Assistant Professor Department of Economics University of Wisconsin 1180 Observatory Drive Madison, WI 53706-1393 (510) 735-7741 [email protected]

Javier Bianchi Senior Research Economist Federal Reserve Bank of Minneapolis 90 Hennepin Avenue Minneapolis, MN 55401 (612) 204-5934 [email protected]

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Dissertation Abstract : Essays in International Macroeconomics Chapter 1 : Business and Credit Cycles in Emerging Economies: the Role of Financial Frictions What rationalizes the stylized facts of emerging market business and credit cycles? Business and credit cycles in emerging countries display very volatile consumption, highly volatile and countercyclical net exports, strongly counter-cyclical real interest rates, and highly pro-cyclical flows of credit to the household sector and to the business sector. The standard small-open-economy (SOE) model cannot generate this cyclical pattern of the interest rate and the change in credit market liabilities of households. In order to correct this irregularity and account for the data pattern, this paper augments the SOE model to include collateral constraints for the household sector and limited enforcement constraints for the financial sector a´ la Gertler-Kiyotaki(2010) and solves by global nonlinear methods. The model generates business and credit cycles consistent with Korean data and gives a rationale for highly volatile consumption, counter-cyclical country interest rates, and pro-cyclical credit flows. In the quantitative counterfactual experiments, we find that the output volatility of Korea is reduced by 11% and welfare gains amount to 0.17% increase in one quarter’s steady-state consumption when the default risk in the financial sector is completely eliminated. Chapter 2 : Optimal Monetary Policy under Imperfect Risk-Sharing and Firms’ Pricing-to-Market How does the degree of exchange rate pass-through (Producer-Currency Pricing vs. LocalCurrency Pricing) and imperfect risk-sharing affect the effectiveness of the optimal monetary policy? Global resource allocation can be inefficient because exporting firms may price discriminate among markets and households in different countries may pay different prices for identical goods. Political, technological, or informational barriers may hinder trades between countries, leading to deviations from efficient risk sharing. We consider this stylized setting and reexamine the optimal monetary policy by introducing the failure of the law of one price and inefficient risk-sharing to the analysis of open economies. Chapter 3 : Macroprudential Policy and International Risk Sharing Conventional wisdom suggests that removal of capital controls and financial liberalization can help countries to have better consumption smoothing by insuring against idiosyncratic economic uncertainty. However, an extensive literature has shown that there is little evidence that countries have increased international risk sharing. Bai and Zhang(2012) shows financial frictions in international financial markets can rationalize this puzzle: international financial contracts are incomplete and have limited enforceability. In this paper, we follow this insight and ask whether optimal financial regulation on capital flows can improve on international risk sharing. We construct the theoretical laboratory where private agents in the continuum of small-open economies face credit constraints which limit the amount of borrowing to the value of their collateral. We characterize the macroprudential policy in the form of capital controls which corrects the pecuniary externality arising from the price-dependent borrowing limit. We examine whether a non-cooperative, self-oriented optimal macroprudential policy can improve on international risk sharing.

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