For a complete list of publications, please see my Curriculum Vitae.

Publication Indicators

Google Scholar: h=9 (All time)

IDEAS: Top 5% of authors worldwide in one citation category; ranked within Top Economists by Cohorts among 2019 PhD recipients worldwide.

Working Papers

Leverage and Rate of Return Heterogeneity among U.S. Households 
    -First version as job market paper, August 2018 
    -Third chapter of doctoral thesis, October 2019.
    -Last updated May 2021 (Update coming soon)

This paper documents permanent heterogeneity in returns on wealth among U.S. households and how returns vary over the wealth distribution. Measures of panel-data for returns on the entire household wealth portfolios and by asset class are proposed. The majority of the permanent heterogeneity in returns on wealth across households is driven by permanent heterogeneity in the degree of borrowing. On average, the return to wealth declines in total household wealth due to lower leverage of wealthy households. Returns to private equity are found to exhibit declining returns to scale which are offset by wealthier households maintaining leverage.

Idiosyncratic Asset Return and Wage Risk of US Households
    Fourth chapter of doctoral thesis, October 2019. 
Updated May 2021, submitted

This paper documents the degree of idiosyncratic asset return risk, serial correlation, and correlation with wage risk for US households. Novel panel-data measures for returns on household assets are proposed. Sizeable idiosyncratic return risk is documented to exist concurrently with permanent heterogeneity in household-specific returns and exhibits negative serial correlation. On average, the idiosyncratic risk to wages and total asset returns are not correlated. However, this masks the correlated wage and return risk to private business assets and secondary housing assets and capital gains to primary housing. These estimates inform the covariance structure of idiosyncratic asset returns and wage risk.

The New Benchmark for Forecasts of the Real Price of Crude Oil. (with A. Benmoussa and R. Ellwanger)
    – First version February 2020.
    – Bank of Canada, Sept. 2020, Staff Working Paper, 2020-39
    – EEA presentation, August 2020
    – Latest version by request

Standard forecast comparisons with a simple no-change benchmark can introduce spurious predictability when the series is temporally aggregated. We show that a benchmark based on end-of-period observations re-establishes meaningful forecast comparisons and reduces the mean squared prediction errors by up to 45 percent under the null. Moreover, estimating econometric models with end-of period observations produces similarly large short-horizons forecast gains. We illustrate these effects by estimating popular real-time forecasts of the real price of crude oil with a new series of monthly real closing prices. Despite unprecedented forecast improvements, crude oil price forecasts cannot outperform the new benchmark. Both the large forecast gains and the higher bar to claim forecastability call for a re-evaluation of proposed methods in studies that forecast temporally aggregated series.

Futures Prices are Useful Predictors of the Spot Price of Crude Oil (with R. Ellwanger)
    – First version March 2021.
    – LCERPA Working Paper No. 2021-4, May 2021.
    – Updated May 2021, submitted

Contrary to the established view, futures prices significantly improve upon the accuracy of monthly no-change forecasts. This results from two innovations. First, we document that independent of the construction of futures-based forecasts, longer-horizon futures prices have become better predictors of crude oil spot prices since the mid-2000s. Second, we show that futures curves constructed using end-of-month prices instead of average prices can generate large accuracy-improvements for short-horizon forecasts of average prices. These findings are remarkably robust.

Demand for Skilled International Migrants: Implications for Labor Market Outcomes and Remittances (with S. Alhadi)
    -Latest version March 2021, submitted

This paper documents several new facts, using structural and dynamic evidence, of the drivers and consequences of substitution in the demand for skilled versus unskilled international migrants. Key among these are that because substitutions are not reflected in aggregate employment outcomes, it is necessary to deconstruct migration by skill level to understand aggregate wages, participation rates and remittances. This evidence informs the economic theory of migration, policy, and the future path of migrant skill demand.

Doctoral dissertation

Snudden, S. (2019). Household Return Heterogeneity in the United States.
    – Recipient of the 2019-2020 C.A. Curtis Prize in Economics for best PhD thesis.

This thesis provides empirical evidence on heterogeneity in returns on wealth among U.S. households.

Refereed Publications

Coletti, D., R. Lalonde, P. Masson, D. Muir and S. Snudden, 2021. “Commodities and Monetary Policy: Implications for Inflation and Price Level TargetingJournal of Policy Modelling (Bank of Canada Working Paper, 2012-16

This paper examines the relative merits of price level versus inflation targeting in response to international shocks to primary commodity markets. Persistent crude oil price movements result in significant deterioration of the inflation-output gap trade-off available to central banks. When such terms-of-trade shocks are prevalent, price level targeting is inferior to inflation targeting.

Snudden S., 2019. “Labor and Behavior Determinants of Remittances in Saudi Arabia.” Economic Notes, Special Issue: The Political Economy of Migrant Remittances, vol. 48(3):  1-16. (working paper)

This is the first study to structurally deconstruct remittance dynamics into the behavioral and labor market outcomes of migrants.  For Saudi Arabia, the estimates suggest that migrant labor supply is highly elastic. The important determinates of remittance dynamics are the marginal propensity to remit, migrant wages, and the extensive margin of migrant labor supply. The marginal propensity to remit is found to respond counter‐cyclically to foreign gross domestic product.

Snudden S., 2018. “International Remittances, Migration, and Primary Commodities.” The World Economy, vol. 41(11): 2934–2953. (working paperappendix)

This paper documents the global crude oil market as a driver of international migration and remittances.  Large oil exporters who are labor importers transmit international financial and labor spillovers to oil-importing labor exporters. Despite large financial flows, the remittees’ economic conditions are dominated by the trade and crude oil channels.

Snudden S., 2018. “Targeted Growth Rates for Long-Horizon Crude Oil Price Forecasts.”  International Journal of Forecasting, vol. 34: 1–16.

This paper uses insights from spectral analysis to develop a technique to improve medium- to long-horizon forecast accuracy. The technique is applied to forecast methods of the price of crude oil and found to be able to generate similar precision at 1-5 year horizons that had previously only been found at horizons of less than one year.

Snudden S., 2016. “Cyclical Fiscal Rules for Oil-Exporting Countries.” Economic Modelling, vol. 59: 473–483.

This paper examines optimal fiscal and monetary policy responses to temporary shocks to the international market for crude oil. Budget-balance tax-gap rules and inflation targeting are the preferred regimes in order to stabilize the macroeconomic volatility and welfare in oil-exporting countries. The output-inflation trade-off is of particular concern for oil exporters relative to non-oil commodity exporters due to the pass through of oil prices into headline inflation.

Andersen, D., B. Hunt, and S. Snudden. 2014. “Fiscal Consolidation in the Euro Area: How Much Pain can Structural Reforms Ease?” Journal of Policy Modeling, vol. 36(5): 785–799.

This paper examines the scope for structural reforms in the euro area to offset the negative effects of fiscal consolidation. The results suggest that structural reforms in core countries could be expected to offset the near-term negative impact on activity arising from the required fiscal consolidation. However, for the periphery, the results suggest that it would take several years before structural reforms could return the level of output back to its pre-consolidation path.

Beaton, K., R. Lalonde, and S. Snudden. 2014. “The Propagation of U.S. Shocks to Canada: Understanding the Role of Real-Financial Linkages.” Canadian Journal of Economics, vol. 47(2): 466-497.

This paper introduces a financial accelerator, inter-bank lending markets, and international bank lending into an international DSGE model. We find that the U.S. banking and interbank markets are an important source of variability. The presence of both the demand and the real supply sides of credit in the model help to capture the stylized facts of both domestic and international business cycles.

Coenen, G., C. de Resende, C. Erceg, C. Freedman, D. Furceri, J. in’t Veld, M. Kumhof, R. Lalonde, D. Laxton, J. Linde, A. Mourougane, D. Muir, S. Mursula, J. Roberts, W. Roeger, S. Snudden, and M. Trabant, 2012. “Effects of Fiscal Stimulus in Structural Models.” American Economic Journal: Macroeconomics, vol. 4(1): 22–68.

This paper compares discretionary fiscal stimulus using seven policy and two prominent academic DSGE models. Considerable agreement across models is found on both the absolute and relative sizes of different types of fiscal multipliers. Fiscal policy is most effective if it has moderate persistence and if monetary policy is accommodative. Permanently higher deficits imply significantly lower initial multipliers.

Klyuev, V. and S. Snudden, 2011. “Effects of Fiscal Consolidation in the Czech Republic.” The Czech Journal of Economics and Finance, vol. 61(4): 306-326.

This paper assesses dynamic fiscal multipliers for a variety of fiscal instruments, consolidation durations, assumptions about credibility, and monetary policy responses in the Czech Republic. The article evaluates proposed and alternative “growth-friendly” fiscal consolidations to achieve the government’s balanced budget target.


Duttagupta, R., J, Bluedorn, A. Pescatori, and S. Snudden . “Commodity Price Cycles and Commodity Exporters,” Chapter 4 in the World Economic Outlook, April 2012. International Monetary Fund: Washington D.C.

Anderson, D., M. Badia, E. Ruiz, S. Snudden and F. Vitek, 2015. “Fiscal Consolidation under the SGP: Some Illustrative Simulations,” Chapter 7 in Mechanics of a Strong Euro Area, by M. Pradhan, and P. K. Brooks (eds), International Monetary Fund: Washington D.C.

Other Papers

de Resende, C., R. Lalonde, and S. Snudden, “The Power of Many: Assessing the Economic Impact of the Global Fiscal Stimulus,” Bank of Canada Discussion Paper 2010-1.

de Resende, C., K. Beaton, R. Lalonde, and S. Snudden, 2010. “Prospects for Global Current Account Rebalancing,” Bank of Canada Discussion Paper 2010-4.

Andersen, D., B. Hunt, M. Kortelainen, M. Kumhof, D. Laxton, D. Muir, S. Mursula, and S. Snudden, 2013. “Getting to Know GIMF: The Simulation Properties of the Global Integrated Monetary and Fiscal Model,” IMF Working Paper No. 2013-55.

Andrle, M., P. Blagrave, P. Espaillat, K. Honjo, B. Hunt, M. Kortelainen, R. Lalonde, D. Laxton, E. Mavroeidi, D. Muir, S. Mursula, and S. Snudden, 2015. “The Flexible System of Global Models – FSGM,” IMF Working Paper No. 2015-64.

Blog Posts

A Better Way to Forecast Crude Oil Prices,” Economics and Policy Blog, The John Deutsch Institute for the Study of Economic Policy, Queen’s University, October 24, 2016.

Oil Exporters Should NOT Price Level Target,” Economics and Policy Blog, The John Deutsch Institute for the Study of Economic Policy, Queen’s University, March 31, 2017.

How we decided on 2% fiscal stimulus during the Great Recession,” Economics and Policy Blog, The John Deutsch Institute for the Study of Economic Policy, Queen’s University, June 21, 2017.

Interviews (Not Authored)

Laurier economists on whether a recession is coming” Sept. 12, 2019, Wilfrid Laurier University.