Gideon Bornstein

Publications

Nonlinear Pricing and Misallocation (with Alessandra Peter)
American Economic Review, November 2025

A World Equilibrium Model of the Oil Market (with Per Krusell and Sergio Rebelo)
Review of Economic Studies, January 2023

A Continuous-Time Model of Sovereign Debt [replication codes]
Journal of Economic Dynamics and Control, September 2020

Quantitative Sovereign Default Models and the European Debt Crisis (with Luigi Bocola and Alessandro Dovis)
Journal of International Economics, May 2019

Moral Hazard Misconceptions: The Case of the Greenspan Put (with Guido Lorenzoni)
IMF Economic Review, June 2018

Working Papers

Firm Exit and Financial Frictions, June 2026 (with Laura Castillo-Martinez)
NSF Grant Awarded

Monopsony Power and the Transmission of Monetary Policy, June 2026 (with Bence Bardóczy and Sergio Salgado)

The Macroeconomics of Trade Credit, June 2026 (with Luigi Bocola)
R&R at American Economic Review

IneQuality, March 2026 (with Alessandra Peter)

Entry and Profits in an Aging Economy: The Role of Consumer Inertia, March 2026
Accepted for Publication at Review of Economic Studies

The Impact of Social Insurance on Household Debt, November 2025 (with Sasha Indarte)
R&R at Review of Economic Studies

Work in Progress

Housing Heterogeneity and the Business Cycle: The Role of Micro and Macro Rigidities (with Sasha Indarte and Emily Williams)

Bank Market Power (with Luigi Bocola, Cedomir Malgieri, and Federico Puglisi)

• Sasha Indarte and Gideon Bornstein, The Impact of Social Insurance on Household Debt. Abstract

  This paper investigates how the expansion of social insurance affects households’ accumulation of debt. Insurance can reduce reliance on debt by lessening the financial impact of adverse events like illness and job loss. But it can also weaken the motive to self-insure through savings, and households’ improved financial resilience can increase access to credit. Using two quasi experimental research designs, we estimate the causal effect of expanded insurance on household debt, exploiting the staggered expansions of one of the largest US social insurance programs: Medicaid. We find that expanding Medicaid increased credit card borrowing by 2.2%. Decomposing this effect in a model of household borrowing, we show that increased credit supply in response to households’ improved financial resilience fully accounts for this rise in borrowing and contributed to 17% of the total welfare gains of expanding Medicaid.

Current Courses

• FNCE9370 - Topics In Macro Finance

  This is an advanced course in quantitative theory applied to macro and finance models. It is intended for doctoral students in finance, economics and related fields. The course focuses on four broad theoretical literatures: (i) firm investment and growth; (ii) corporate, household and sovereign debt; (iii) asset pricing in general equilibrium; and (iv) equilibrium macro models with a financial sector. My approach is to develop and discuss in detail a unified framework that is suited to address most topics, usually covering a few central topics and the core papers. We then discuss the more recent literature, highlighting how authors combine and expand upon the core ideas. This part of the course usually relies on regular student presentations.

  FNCE9370001 ( Syllabus )

Past Courses

• FNCE1010 - Monetary Econ & Glob Eco

  This is an intermediate-level course in macroeconomics and the global economy, including topics in monetary and international economics. The goal is to provide a unified framework for understanding macroeconomic events and policy, which govern the global economic environment of business. The course analyzes the determinants and behavior of employment, production, demand and profits; inflation, interest rates, asset prices, and wages; exchange rates and international flows of goods and assets; including the interaction of the real economy with monetary policy and the financial system. The analysis is applied to current events, both in the US and abroad. Students cannot receive credit for taking both FNCE 1010 and ECON 2200. Wharton students are required to take FNCE 1010.

• FNCE8990 - Independent Study

  Independent Study Projects require extensive independent work and a considerable amount of writing. ISP in Finance are intended to give students the opportunity to study a particular topic in Finance in greater depth than is covered in the curriculum. The application for ISP's should outline a plan of study that requires at least as much work as a typical course in the Finance Department that meets twice a week. Applications for FNCE 8990 ISP's will not be accepted after the THIRD WEEK OF THE SEMESTER. ISP's must be supervised by a Standing Faculty member of the Finance Department.

• FNCE9330 - International Finance

  To provide an understanding of selected topics of current academic research in the areas of international finance and its intersection with international macroeconomics; to teach interested students the tools for conducting research in this field. Each topic will be developed beginning with early classic papers and then updated through the current status of the profession. The typical target audience comprises students in their second year or later. Prerequisite: Completion of first year course requirements

• FNCE9370 - Topics in Macro Finance

  This is an advanced course in quantitative theory applied to macro and finance models. It is intended for doctoral students in finance, economics and related fields. The course focuses on four broad theoretical literatures: (i) firm investment and growth; (ii) corporate, household and sovereign debt; (iii) asset pricing in general equilibrium; and (iv) equilibrium macro models with a financial sector. My approach is to develop and discuss in detail a unified framework that is suited to address most topics, usually covering a few central topics and the core papers. We then discuss the more recent literature, highlighting how authors combine and expand upon the core ideas. This part of the course usually relies on regular student presentations.

• INSP4997 - Senior Capstone

  This senior-year research course is designed to facilitate the completion of a thesis or project as part of the Huntsman Program's senior capstone experience. Students in the Huntsman Program should consult with the Huntsman Program advisors for more information.

• Rodney L. White Center Research Grant, 2026 Description

  “The Impact of Social Insurance on Household Debt,” with Sasha Indarte

• Marshall Blume Prize, 2026 Description

  “The Macroeconomics of Trade Credit,” with Luigi Bocola

• National Science Foundation Grant, 1970 Description

  “The Anatomy of Firm Exit: Theory and Facts,” co-PI with Laura Castillo-Martinez. Total award: $465,996.

Knowledge @ Wharton

• How Fast-Casual Brands Build Loyalty, Knowledge @ Wharton - 08/13/2026
• The NFL’s Biggest 2026 Questions, Knowledge @ Wharton - 08/12/2026
• Can AI Companies Regulate Themselves?, Knowledge @ Wharton - 08/12/2026
• The Different Philosophies Driving AI Regulation Today, Knowledge @ Wharton - 08/11/2026
• How Trust Shapes Retirement Security, Knowledge @ Wharton - 08/11/2026
• Will the Government Bail Out Your 401(k) in a Market Crash?, Knowledge @ Wharton - 08/07/2026
• Why AI Makes Collective Intelligence More Valuable Than Ever, Knowledge @ Wharton - 08/05/2026
• Why Pitch Counts Are Failing Baseball, Knowledge @ Wharton - 08/05/2026
• The Psychology Behind Back-to-School Shopping, Knowledge @ Wharton - 08/04/2026
• How Credit Risk Is Factored in Corporate Bond Spreads, Knowledge @ Wharton - 08/03/2026