Discussion Papers

This paper argues that endogenous growth requires not merely savings and investment, but institutions that ensure investment is productivity-enhancing...

The demand-system approach identifies asset demand slopes using residual supply shocks, presuming these shocks move expected returns but not risk. In...

We derive new bounds on arbitrary moments of the stochastic discount factor (SDF) that exploit the gap between the true and risk-neutral return...

This paper develops an overlapping generations model to analyse the inflationary consequences of introducing cryptocurrency alongside fiat money in an...

We develop a theory of liquidity transformation performed by market participants. An in-kind wrapper (e.g., a corporate bond ETF), issued by a fee...

Portfolio choice involves substituting across many assets at once, complicating inference about asset demand. An elementary condition often captures...

This paper explains why institutional reforms often fail to stimulate investment despite improving long-run fundamentals. We develop a real options...

Commonly used frequentist estimation methods for linear factor models of asset returns are invalidated by weak and spurious factors. The problem is...

The equity premium has conventionally been defined as the return on stocks minus the return on bills. We decompose this conventional definition into...

This paper introduces a dynamic model of corporate investment that integrates misreporting incentives with leverage and growth option timing. Unlike...

We analyze the impact of financial market fragmentation when traders differ in terms of market access and information about the asset payoff. Agents...

This paper provides a novel efficiency rationale for progressive corporate taxation based on commitment problems in entrepreneurial finance. Poor...

We highlight the multiplier role of (public) safe assets by studying a model of a bank’s balance sheet. The bank optimally constructs a portfolio of...

How do copayments affect the benefits and costs of health insurance in low-income settings? We study this question in a field experiment in rural...

Skilled intermediaries can represent multiple investors, generating economies of scale in screening costs. However, locating competent intermediaries...

This paper analyses how firms respond to liquidity shocks when asset prices are endogenously determined through matching frictions. Building on...