Discussion Papers

Complexity can create value. At the same time, understanding more complex goods requires more of an agent’s attention. We show that equilibrium...

We derive option-implied bounds on the probability of a crash in an individual stock, and argue a priori that the lower bound should be close to the...

The rapid adoption of artificial intelligence (AI) poses new and poorly understood threats to financial stability. We use a game-theoretic model to...

This paper uses credit bureau data on 648 million retail loans in India to examine the comparative advantages of shadow banks across market segments...

We study the structure of public firm buyouts in a model that features both the Berle-Means problem (lack of incentives) and the Grossman-Hart problem...

We present a model in which firms compete for workers who value nonpecuniary job attributes, such as purpose, sustainability, political stances, or...

We propose a novel measure that allows us to study memory associations in financial markets over the course of several decades. Using our measure, we...

UK government bond yields tend to rise in a two-day window before labor market data releases and monetary policy news. This effect, particularly...

We study causal narratives – narratives which describe a (potentially incorrect) causal relationship between variables. In a series of experiments...

This paper studies the general equilibrium implications of arbitrage trades in segmented financial markets. Arbitrageurs choose a category of trades...

This paper studies how firms allocate their Corporate Social Responsibility (CSR) expenditures to inform the welfare effects of corporate...

We analyze the stability of financial investment networks, where financial institutions hold overlapping portfolios of assets. We consider the effect...

We provide worldwide large-sample evidence of a recent innovation in corporate governance: the voluntary creation of a separate board committee to...

A global consensus is growing on the contribution that corporations and finance must make towards the net-zero transition in line with the Paris...

We develop a novel method to infer intra-quarter trading of individual mutual funds. After a mutual fund executes a trade, its reported portfolio...

We study coordinated engagements by a prominent international network of long-term shareholders cooperating to influence firms on environmental and...