Fang Yang

Associate Professor, Department of Economics, Louisiana State University


Department of Economics

2322 Business Education Complex, Nicholson Extension
Baton Rouge, LA 70803


Office phone: 225-578-3803


Research Interests


         Macroeconomics, Public Finance, Labor Economics, Wealth Inequality, Savings, and Housing




2006 Ph.D. (Economics), University of Minnesota-Twin Cities

2004 M.A. (Economics), University of Minnesota-Twin Cities

1999 M.A. (Economics), Peking University, China

1996 B.A. (Economics), Peking University, China



CV (pdf)




1.    Consumption Over the Life Cycle: How Different is Housing? Review of Economic Dynamics 12(3): 423-443, 2009. Micro data over the life cycle show different patterns for consumption for housing and non-housing goods: The consumption profile of non-housing goods is hump-shaped, while the consumption profile for housing first increases monotonically and then flattens out. These patterns hold true at each consumption quartile. This paper develops a quantitative, dynamic, general equilibrium model of life-cycle behavior, that generates consumption profiles consistent with the observed data. Borrowing constraints are essential in explaining the accumulation of housing stock early in life, while transaction costs are crucial in generating the slow downsizing of the housing stock later in life.

2.   American Dream or American Obsession? The Economic Benefits and Costs of Homeownership, with Wenli Li, Business Review, Q3, 20-30, 2010

3.   Accounting for Gender Gap in College Attainment, with Suqin Ge, Economic Inquiry, Appendix 51(1), 2013, 478-499.

4.   Social Security Reform with Impure Intergenerational Altruism, Journal of Economic Dynamics and Control, 37 (2013), pp. 52-67.

5.   Consumption and Time Use over the Life Cycle, with Michael Dotsey and Wenli Li , International Economic Review, Vol. 55, No. 3, August 2014 pages 665–692. Online Appendix.                                                                                 Slides


6.   Bequests and Heterogeneity in Retirement Wealth , with Mariacristina De Nardi, European Economic Review, 2014, pp. 182-196.


7.   Home Production and Social Security Reform, with Michael Dotsey and Wenli Li, European Economic Review, 73, 2015, 131–150. Online Appendix.                                                                                                                                  Slides


8.   Skill-Biased Technical Change and the Cost of Higher Education, with John B. Jones, The Journal of Labor Economics, 2016, vol. 34, no. 3, 621-662.                                                                                                                                     Slides

9.   Wealth Inequality, Family Background, and Estate Taxation, with Mariacristina De Nardi, NBER WP #21047, Journal of Monetary Economics, 77 (2016), 130-145. Online Appendix,                                                                               Slides

10.    Is Relative Risk Aversion Time-varying? Evidence from Households' Portfolio Choice Data, with Xuan Liu and Zongwu Cai, accepted by Journal of Economic Dynamics and Control, 69(2016), 229–248

11.   Housing Over Time and Over the Life Cycle: A Structural Estimation, with Wenli Li, Haiyong Liu, and Rui Yao, International Economic Review, 57 (4), 2016, 1237–1260. Online Appendix.                                                          Slides

12.   Piketty’s Book and Macro Models of Wealth Inequality, with Mariacristina De Nardi and Giulio Fella. Chicago Fed Letter, 352, 2016

13.   The Aggregate Implications of Gender and Marriage, with Margherita Borella and Mariacristina De Nardi, NBER working paper 22817.  The Journal of the Economics of Ageing. Volume 11, May 2018, Pages 6-26                                    SlidesThis paper generates two main contributions. First, it provides a new theory of wealth inequality that merges two empirically relevant forces generating inequality: bequest motives and inheritance of ability across generations; and an earnings process that allows for more earnings risk for the richest. Second, it uses the resulting calibrated framework to study the effects of changing estate taxation. Increasing the estate tax reduces the wealth concentration in the hands of the richest few and the economic advantage of being born to a rich and super-rich family at the cost of reduced aggregate capital and output. However, all of these effects are quite small. In contrast, increasing estate taxation can generate a significant welfare gain to a newborn under the veil of ignorance, but this comes at a large welfare cost for the super-rich.

14.   Macro Models of Wealth Inequality, with Mariacristina De Nardi and Giulio Fella, in “After Piketty: The Agenda for Economics and Inequality,” Heather Boushey, Bradford DeLong, and Marshall Steinbaum, Editors, Harvard University Press. 2017. NBER WP #21730.


Working papers

15.    Financial Intermediation and Capital Reallocation, with Hengjie Ai and Kai Li. Online Appendix. Revise and Resubmit.

16.   Marriage-related policies in an estimated life-cycle model of households' labor supply and savings for two cohorts, with Margherita Borella and Mariacristina De Nardi, NBER working paper #23972

17.   Policy Reforms, Housing, and Wealth Inequality

18.   How do Households Portfolios Vary with Age?


Work in Progress

19.   The changing opportunities and outcomes of non-college educated Americans over time, with Margherita Borella and Mariacristina De Nardi

20.   The Consequences of An Aging Chinese Miracle, with Michael Dotsey and Wenli Li

21.   Consumption and Hours between U.S. and France, with Lei Fang

22.   Financial Reform and Housing Prices, with Betty C. Daniel

23.   Labor Supply of Married Household: a Gender Specific Analysis, with Suqin Ge

24.   Limited Enforcement, Private Information, and Risk Sharing, with Hengjie Ai



Selected Media Post

For effective policy, economic models must include women, with Margherita Borella, Mariacristina De Nardi, and Sharada Dharmasankar


Selected Press Coverage of Research

The Rent Isn't Too Damn High: Why it's good news that more Americans are renting rather than buying homes.

Macroeconomists Can't Keep Ignoring Race and Gender


Teaching (at LSU)  

Macroeconomics II (1st year PhD Core Course)

Graduate Advanced Topics in Macroeconomics  (2nd year PhD course)

Intermediate Macroeconomics

Money, Banking, and Macroeconomic Activity


Co-organizer of Mid-West Macroeconomic Meetings held at LSU May 17-19, 2017.














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