Influential research by members of the Financial Markets Group has been published in some of the most recognised international journals in the field.
Click to see a collection of notable FMG working papers which have been published in American Economic Review, Econometrica, Journal of Finance, Journal of Financial Economics, Journal of Political Economy, Quarterly Journal of Economics, Review of Economic Studies, and Review of Financial Studies.
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...
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...
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...
Why some nations’ labour markets did better during the pandemic
Leaving human capital out of policy discussions might lead to incorrect inferences about which measures were most successful during the pandemic...
The Development of Central Bank Digital Currency in China: An Analysis
The People’s Bank of China (PBOC) has launched an ambitious project to develop a digital currency for use in domestic, retail transactions, and is, by...
Multi-Asset Noisy Rational Expectations Equilibrium with Contingent Claims
We study a noisy rational expectations equilibrium in a multi-asset economy populated by informed and uninformed investors and noise traders. The...
Company Law: A Real Entity Theory
This book advances a real entity theory of company law, in which the company is a legal entity which acts autonomously in law, and company law...
Clients' Connections Measuring the Role of Private Information in Decentralized Markets
Journal of Finance, 2021, in press
Blockchain Analysis of the Bitcoin Market
In this paper, we provide detailed analyses of the Bitcoin network and its main participants. We build a novel database using a large number of public...
Comomentum: Inferring Arbitrage Activity from Return Correlations
The Review of Financial Studies, 2021, in press
Cleansing by Tight Credit: Rational Cycles and Endogenous Lending Standards
Endogenous cycles are generated by the two-way interaction between lenders’ behavior in the credit market and production fundamentals. When lenders...
The new global tax deal arrives (but expect bumps ahead)
Nearly 140 countries have agreed to a new global tax deal, which was years in the making. Estonia, Hungary and Ireland, the last holdouts, joined the...
Simpler approaches to a global tax plan
More than 130 countries have lined up in favour of a global redesign of corporate taxes. The redesign calls for multinational giants to pay their...
Changing bankruptcy law has given firms time to adapt and recover
Bankruptcies are costly, but economists worry about keeping doomed firms alive. Simeon Djankov (LSE) argues that restructuring bankruptcy laws has...
Gendered laws curb Olympic success
Legal gender equality is key for female participation in the labour market. The association between women’s legal empowerment and success in sports is...
