Publications

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...

Using an equilibrium network model and a large international panel of cross-border trade, we analyse empirically the drivers of foreign currency...

We introduce discounted alpha - a novel framework for equity valuation. By correcting market prices rather than discounting long-horizon cash flows...

We analyse how public health insurance affects private insurance markets in mixed public-private systems. Extending the standard selection framework...

Almost all firms repurchase shares through open-market repurchase programs. In contrast, issue methods are more diverse: at-the-market offerings...

We provide a novel priced Wold representation that, using the pricing restrictions of a large cross-section of asset returns, sharply identifies...