The Twelfth Annual Conference of the Paul Woolley Centre for the Study of Capital Market Dysfunctionality in collaboration with the Bank for International Settlements (BIS) took place at the London School of Economics on 6-7 June 2019.

Research at the Centre aims at understanding the workings of capital markets and the social efficiency of allocations these markets achieve. The research departs from the Arrow-Debreu view of frictionless markets, and emphasises the role of financial intermediaries (e.g. investment banks, mutual, hedge, and pension funds) in influencing prices and allocations. The main themes are (i) contracts between financial intermediaries and end-investors as well as within intermediaries, (ii) effects of frictions such as asymmetric information and agency on prices, (iii) effects of frictions on the allocation of capital in the economy, and (iv) policy responses to alleviate adverse effects of frictions.

The Paul Woolley Centre holds a conference each year based on these broad themes as well as related research questions. The goal is to bring together researchers working on such questions, disseminate their research, and stimulate the development of new ideas. Both empirical and theoretical papers are welcome.

There will be a “BIS session” this year on Fintech and Financial Markets. That session will explore questions such as (a) What are the comparative advantages and stability risks arising from the activity of “bigtech” technology firms in financial markets? (b) What are the benefits and risks of ‘peer-to-peer (P2P)’ finance relative to more traditional forms of intermediation? And (c) How might distributed ledger technology (DLT) and similar advances affect financial contracts and the financial system? The BIS session will explore these questions, which connect to the Centre’s research agenda, with special emphasis on the policy angles.





Slides available for download below.

The Economics of Deferral and Clawback Requirements: An Indirect Tax Approach to Compensation Regulation
Authors: Florian Hoffmann, Roman Inderst, *Marcus Opp (Slides)
Discussant: Ernst-Ludwig von Thadden (Slides)

A Model of Intermediation Money, Interest, and Prices
Authors: *Saki Bigio, Yuliy Sannikov
Discussant: Walker Ray (Slides)

The Benchmark Inclusion Subsidy
Authors: Anil K Kashyap, Natalia Kovrijnykh, Jian Li, *Anna Pavlova (Slides)
Discussant: Jan Bena (Slides)

Career Risk and Market Discipline in Asset Management
Authors: *Andrew Ellul, Marco Pagano, Annalisa Scognamiglio (Slides)
Discussant: Hao Jiang

Can Risk be Shared Across Investor Cohorts? Evidence from a Popular Savings Product
Authors: Johan Hombert, *Victor Lyonnet (Slides)
Discussant: Ishita Sen (Slides)

Expectations During the U.S. Housing Boom: Inferring Beliefs from Actions
Authors: Itzhak Ben-David , *Pascal Towbin, Sebastian Weber (SSRN page)
Discussant: Paul Willen (Slides)

Designing Central Bank Digital Currencies
Authors: *Itai Agur, Anil Ari, Giovanni Dell’Ariccia (Slides)
Discussant: Morten Bech (Slides)

Economics of Proof-of-Stake Payment Systems
Authors: Giulia Fanti, *Leonid Kogan , Pramod Viswanath (Slides)
Discussant: Bruno Biais (Slides)

Cryptocurrency Pump-and-Dump Schemes
Authors: Tao Li, Donghwa Shin, *Baolian Wang (Slides)
Discussant: Ming Yang (Slides)

Are Intermediary Constraints Priced?
Authors: Wenxin Du , *Benjamin Hébert , Amy Wang (Slides)
Discussant: Thummim Cho (Slides)

Understanding Global Equity Valuations
Authors: Ralph S.J. Koijen,*Robert J. Richmond , Motohiro Yogo
Discussant: Oleg Rytchkov (Slides)


Programme Committee
Ashwini Agrawal (LSE), Sirio Aramonte (BIS), Georgy Chabakauri (LSE), Thummim Cho (LSE), Benjamin Cohen (BIS), Amil Dasgupta (LSE), Christian Julliard (LSE), Peter Kondor (LSE), Dong Lou (LSE), Igor Makarov (LSE), Ian Martin (LSE), Martin Oehmke (LSE), Cameron Peng (LSE), Christopher Polk (LSE), Rohit Rahi (LSE), Hyun Song Shin (BIS), Dimitri Vayanos (LSE), Michela Verardo (LSE), Kathy Yuan (LSE), Hongda Zhong (LSE).

For enquiries, please email