Discussion Papers

We study optimal monetary policy in the presence of financial stability concerns. We build a model in which monetary easing can lower the cost of...

We study the effects of collateral constraints in an economy populated by investors with nonpledgeable labor incomes and heterogeneous preferences and...

We derive a formula that expresses the expected return on a stock in terms of the risk-neutral variance of the market and the stock’s excess risk...

This paper has two main objectives: first, to provide a formal definition of endogenous systemic risk that is firmly grounded in equilibrium dynamics...

For a discounted stochastic game with an uncountable state space and compact metric action spaces, we show that if the measurable-selection-valued...

We identify a new class of uncountable-compact discounted stochastic games for which existence of stationary Markov equilibria can be established and...

Using novel position and trading data for single-name corporate credit default swaps (CDSs), we provide evidence that CDS markets emerge as...

This paper presents evidence from 29 postcommunist countries that the economic transition has been more successful than the political transformation...

Across countries, banks have less gender diverse boards than other firms. Bank board diversity is particularly low in countries with greater gender...

Mainstream macro-models have assumed away financial frictions, in particular default. The minimum addition in order to introduce financial...

We study how competition among investors affects the efficiency of capital allocation, the speed of capital, and welfare. In our model, investors...

We present evidence that cultural proximity (shared codes, beliefs, ethnicity) between lenders and borrowers increases the quantity of credit and...

We show that a non-parametric estimate of the pricing kernel, extracted using an information-theoretic approach, delivers smaller out-of-sample...

Risk neutral probabilities are adjusted to take into account the asset price effect of risk preferences. This paper introduces downside (respectively...

We study how efficient primary financial markets are in allocating capital when information about investment opportunities is dispersed across market...

We examine the determinants of success in venture capital transactions using the largest deallevel data set to date, with special emphasis on...