Karthik Sastry

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Assistant Professor of Economics and Public Affairs at Princeton University

I am an Assistant Professor of Economics and Public Affairs at Princeton University. I received a PhD in Economics from MIT in 2022 and I was a Prize Fellow in Economics, History, and Politics at Harvard University in the 2022-23 academic year.

I study macroeconomics. I am broadly interested in the interactions between information, innovation, and markets, in both theory and practice. Two specific topics that I am studying are the effects of bounded rationality and social dynamics on macroeconomic dynamics and the macroeconomic causes and consequences of technological innovation.

My full CV can be found here. You can contact me at ksastry@princeton.edu.

Working Papers

“Attention Cycles,” with Joel P. Flynn. Paper, SSRN Link. February 2024.

“Disagreement About Monetary Policy.” Revise and resubmit, American Economic Journal: Macroeconomics. Paper, SSRN Link. August 2022.

“Food Policy in a Warming World” with Allan Hsiao and Jacob Moscona. Paper. December 2023.

“How Much Should We Trust Regional-Exposure Designs?” with Jeremy Majerovitz. Paper. SSRN Link. November 2023.

“Inappropriate Technology: Evidence from Global Agriculture,” with Jacob Moscona. Revise and resubmit, American Economic Review. Paper, SSRN Link. Coverage: Vox Dev, Econimate, Project Syndicate. November 2022.

“Inattentive Economies,” with George-Marios Angeletos. Revise and resubmit, Journal of Political Economy. Paper, NBER Link. February 2024.

“The Macroeconomics of Narratives,” with Joel P. Flynn. Paper, SSRN Link. November 2022.

“Optimally Coarse Contracts,” with Roberto Corrao and Joel P. Flynn. Paper. SSRN Link. November 2023.

“A Theory of Supply Function Choice and Aggregate Supply,” with Joel P. Flynn and Georgios Nikolakoudis. Paper, SSRN Link. December 2023.

Publications

“Strategic Mistakes,” with Joel P. Flynn. Journal of Economic Theory, 2023, (212). Publisher’s Link, Paper, SSRN Link. June 2023.

“Does Directed Innovation Mitigate Climate Damage? Evidence from US Agriculture,” with Jacob Moscona. Quarterly Journal of Economics, 2023, 138(2): 637-701. Publisher’s Link, Paper, Online Appendix, SSRN Link. Coverage: Harvard Gazette, Nature Climate Change Research Highlight. September 2022.

“Nonlinear Pricing with Under-Utilization: A Theory of Multi-Part Tariffs,” with Roberto Corrao and Joel P. Flynn. American Economic Review, 2023, 113(3): 836-860. Publisher’s Link, Paper, SSRN Link.

“Managing Expectations: Instruments vs. Targets,” with George-Marios Angeletos. Quarterly Journal of Economics, 2021, 136(4): 2467–2532. Publisher’s Link, Paper.

“Imperfect Macroeconomic Expectations: Evidence and Theory,” with George-Marios Angeletos and Zhen Huo. NBER Macroeconomics Annual 2020, 35: 1-86. Publisher’s Link, Paper.

“Feedbacks: Financial Markets and Economic Activity,” with Markus Brunnermeier, Darius Palia, and Christopher A. Sims. American Economic Review, 2021, 111(6): 1845-1879. Publisher’s Link, Paper, Online Appendix.