Can Gao
SFI Faculty Member, Assistant Professor, University of St.Gallen
Can Gao is Assistant Professor of Finance at the University of St.Gallen. Before joining St.Gallen, he was Visiting Fellow at the London School of Economics and worked in the financial industry in London.
Expertise
Professor Gao focuses on government debt and deficits and revisits the traditional metrics of a nation's fiscal health. His approach which separates the contributions of taxes and spending to surplus reveals several salient features. US and UK data shows that the surplus-to-GDP ratio, the expenditure-to-GDP ratio, and the debt-to- GDP ratio all change over time, while the tax-to-GDP ratio remains stable. Fiscal deterioration predicts a long-run decline in spending rather than increased tax revenue or low returns for bondholders. Interestingly, fiscal adjustments to tax and spending shocks return to their long-run values through growth in tax and spending with little effect on bond returns.
Expertise Fields
- Financial Markets
- Financial Crises
- Financial Forecasting
- Portfolio Management and Asset Classes
- Equities
- Fixed Income
- Foreign Exchange
- Options and Other Derivatives
- Frontier Topics
- Big Data and Fintech
- Operations Research and Decision Theory