Gideon Bornstein

Gideon Bornstein
  • Assistant Professor of Finance

Contact Information

  • office Address:

    2454 Steinberg-Dietrich Hall
    3620 Locust Walk
    Philadelphia, PA 19104

Research Interests: Macroeconomics, International Macroeconomics


Working Papers

A World Equilibrium Model of the Oil Market, October 2021 (with Per Krusell and Sergio Rebelo)
Accepted at the Review of Economic Studies

The Impact of Social Insurance on Household Debt (with Sasha Indarte), November 2020

Entry and Profits in an Aging Economy: The Role of Consumer Inertia, November 2018


A Continuous-Time Model of Sovereign Debt
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

Work in Progress

Accounting for Heterogeneity (with David Berger, Luigi Bocola, and Alessandro Dovis)

Nonlinear Pricing and Misallocation (with Alessandra Peter)

Financial Frictions and Firm Exit: Theory and Facts (with Laura Castillo-Martinez)

Awarded NSF Grant (co-PI with Laura Castillo-Martinez)

  • 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.


Past Courses


    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 101 and ECON 102. Wharton students are required to take FNCE 101. Honors sections require MATH 114 as a prerequisite.


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