Sanctions, war, and systemic risk in 1914 and 2022
The Western countries have sanctioned Russia in a way not applied to any globally integrated major power in over a century, ever since 1914. This...
Technology as Deregulation
We present suggestive evidence that new technology has reduced business regulation globally over the 2005-2019 period, in the areas of paying...
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Clients' Connections Measuring the Role of Private Information in Decentralized Markets
Journal of Finance, 77(1), 505-544
High-frequency Trading in the Stock Market and the Costs of Option Market Making
Using a comprehensive panel of 2,969,829 stock-day data provided by the Securities and Exchange Commission (MIDAS), we find that HFT activity in the...
Post-Corona balanced budget fiscal stimulus: The case for shifting taxes onto land
Land’s share in economies’ nonfinancial assets equals between 40% and 60%, and in the US currently equals over 50%. This constitutes a very large base...
How global risk perceptions affect economic growth
The relationship between financial risk and economic growth is complex. This column finds that perceptions of high risk unambiguously harm growth...
International Asset Allocation With Time-varying Investment Opportunities
This paper analyses the international equity holdings of a large panel of UK pension funds. We find considerable evidence of market timing activity...
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Inflating Away the Public Debt? An Empirical Assessment
The Review of Financial Studies, 35 (3), 1553-1595
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Measuring the ex-ante incentive effects of creditor control rights during bankruptcy reorganization
Journal of Financial Economics, 143 (1), 381-408
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Exchange Rate Exposure and Firm Dynamics
The Review of Economic Studies, 89 (1), 481-514
Volatility, Valuation Ratios, and Bubbles: An Empirical Measure of Market Sentiment
Journal of Finance, 76 (6), 3211-3254
Municipal Bond Insurance and the U.S. Drinking Water Crisis
We show that the collapse of the municipal bond insurance industry plays an important, but previously overlooked, role in driving regional variation...
A Theory of Socially Responsible Investment
We characterize necessary conditions for socially responsible investors to impact firm behavior in a setting in which firm production generates social...
