Mr Tiancheng Sun

Mr Tiancheng Sun

PhD Candidate in Economics

Department of Economics

English, Mandarin
Key Expertise
Macroeconomics, Monetary Economics, Computational Economics

About me

Research interests
Macroeconomics (primary)
Monetary economics (secondary)

Job market paper
Capacity Underutilization and Demand Driven Business Cycles 

Read the abstract and download the paper

I propose a macroeconomic model where firms hold capacity to compete for buyers who are not fully attentive to price differences and thus search for capacity in a somewhat random way. Because of this competition among firms, capacity is underutilized for production in the long term. Demand naturally drives business cycles as a result of capacity underutilization. A shock to consumption demand generates a large movement in investment, an acyclical real wage, and a pro-cyclical Solow residual. Estimation results indicate that the single consumption demand shock can already explain 70% of the variance in consumption, 78% of the variance in investment, 59% of the variance in hours, and 71% of the variance in the capacity utilization rate.

Download the paper

Download CV

Tiancheng Sun:

Download Tiancheng's CV


Placement Officer
Professor Mark Schankerman

Professor Wouter Den Haan

Professor Ricardo Reis

Professor Wouter Den Haan
Professor Ricardo Reis
Professor John Moore
Dr David Baqaee

Contact information


Phone number
+44 7925456684

Room number

Office Address
Department of Economics,
London School of Economics and Political Science,
Houghton Street, London WC2A 2AE