Tsenguun Enkhbaatar

PhD Job Market Candidate

My fields of interest are Applied Econometrics, Financial Economics, and Macroeconomics.

My job market paper explores the effect of the stock market collapse during the 2007-2008 financial crisis on households’ consumption decision. Furthermore, I evaluate the effect of the change in the monetary policy regime during the 2007-2008 financial crisis on households’ consumption decision in my job market paper.

I am on the job market this year and will be available for interviews at the 2019 CEEE (Toronto) and at the 2020 AEA/ASSA meetings (San Diego).


In this paper, I evaluate the effect of the stock market collapse during the 2007-2008 financial crisis on households’ consumption decision. To do so, I construct and estimate households’ dynamic model in which households decide whether to participate in the stock market or not in the current period and then choose their optimal consumption level given their stock market participation choice. I find that the stock market collapse, during the 2007-2008 financial crisis, triggered the huge decline in consumption among stock holding households in comparison to non-stock holding households. Furthermore, I show that the drop in the risk-free rate resulting from the change in the monetary policy regime, during the 2007-2008 financial crisis, triggered much larger decline in consumption among wealthy households in relative to less wealthy households. Moreover, the increase in households' expectation of the future volatility of stock market return did not almost affect the consumption decision of wealthy households in contrast to households at the bottom of the wealth distribution who were affected significantly.


In this paper, I estimate the relative risk aversion of households with different positions of wealth by using non-parametric structural estimation method. Relative risk aversion is an important measure of the extent of a household's reaction towards future uncertainty, and conventionally estimated as being constant across households. However, there can be a significant heterogeneity in risk aversion across households with dissimilar characteristics. I employ a combination of extremum estimation and non-parametric kernel estimation methods to estimate the degree of heterogeneous relative risk aversion varying across households with different wealth positions. Data for my analysis is sourced from the Panel Study of Income Dynamics for the US, and the Survey on Household Income and Wealth for Italy. [GO TO PAPER]


I model and estimate households’ home ownership decision making using the Panel of Study Income Dynamics (PSID) dataset following the framework of dynamic logit model from the life-cycle perspective. I estimate how households’ age and wealth position affect households’ home owning decision using the conditional choice probability estimation method. Moreover, I explicitly include households’ portfolio composition decision in the model as I consider that households hold three different types of assets such as the stock holding (risky asset), the home equity, and the risk-free asset (bond, cash, etc.). This enables to evaluate the spillover effects between the main financial markets of the stock market and the housing market on households’ decisions such as the portfolio composition decision, home ownership decision, and savings decision.

Teaching Assistant Positions

2018, 2019               Econ310 Microeconomics

2019                          Econ301 Intermediate Microeconomic Analysis I

2016, 2019               Econ345 Money and Banking

2018                          Econ455 International Trade

2017                          Econ471 Economics of Nonrenewable Resources

2017                          Econ456 Intermediate Macroeconomics and Finance

2017                          Econ465 Market Structure

2016                          Econ356 Introduction to International Finance

2016                          Econ307 Honours Intermediate Macroeconomic Analysis II

2016                          Econ356 International Finance

2015                          Econ305 Honours Intermediate Macroeconomic Analysis I