Research Interests

Macroeconomics: search theory, monetary theory
Microeconomics: industrial organization, game theory, mathematical methods
Experimental Economics

Publications

Huber, S., and J. Kim (2017). On the optimal quantity of liquid bonds. Journal of Economic Dynamics and Control, 79, 184–200.
Camera, G., and J. Kim (2016). Dynamic directed search. Economic Theory, 62(1), 131–154.
Kim, J., and G. Camera (2014). Uniqueness of equilibrium in directed search models. Journal of Economic Theory, 151, 248–267.
Camera, G., and J. Kim (2013). Buyer's equilibrium with capacity constraints and restricted mobility: A recursive approach. Economics Letters, 118(2), 321–323.
Kim, J. (2009). A splitting theorem for holomorphic Banach bundles. Mathematische Zeitschrift, 263(1), 89–102.

Working Papers

• Equilibrium wage rigidity in directed search. (w/ G. Camera) .

Abstract: Matching frictions and downward wage rigidity emerge as equilibrium phenomena in a two-sided labor market where firms sustain variable wage adjustment costs. Firms post wages to attract workers and matches are endogenous. Reducing the wage relative to the wage previously posted is costly to the firm, where the cost is proportional to the size of the proposed cut. Shocks to the firm's profitability may yield an equilibrium wage above what the firm would offer absent proportional adjustment costs. Wage cuts can be partial or full, immediate or delayed, and are non-linear in the shock size. Importantly, wages are sticky even if firms have negligible costs for cutting wages.


Centralized trading of corporate bonds. (w/ S. Huber) .

Abstract: In the post-crisis period, increased regulation of financial intermediaries has led to a significant decline in corporate bond market liquidity. In order to stabilize these bond markets, policy makers recently proposed that the trading of corporate bonds should be more centralized. In this paper, we show that a centralization of corporate bond markets generally leads to an inferior outcome when compared with the initial over-the-counter structure. The reason is that in a frictionless centralized secondary bond market, the demand for bonds increases by such a magnitude that the return on bonds decreases until equaling the return on money, and hence, the market becomes redundant.


Awards and Grants

Fundamental Research Funds for the Central Universities, 2017 – 2019
WISE Start-up Research Grant, Xiamen University, 2016 – 2019
SAFE Junior Visitor grant for visits at Goethe University , 2016
Robert W. Johnson Award for Distinguished Research Proposal, Purdue University , 2011
Purdue University Summer Research Grant, 2010
National Science Foundation (NSF) Research Fund, Purdue University, 2004 – 2008
Lotte Honor Prize Scholarship, Korea, 1999
Sogang Scholarship, Korea, 1998