Administrative contact: Helen Broad, finance@lse.ac.uk
Bubbles and crises, Liquidity
Heterogenous information
Mutual funds
Hedge funds
Network theory
Short-sale and margin constraints
Global games
Asset pricing
Borrowers obtain liquidity by issuing securities backed by current period payoff and resale price of a long-lived collateral asset. They are privately...
The Review of Economic Studies (forthcoming)
We study a noisy rational expectations equilibrium in a multi-asset economy populated by informed and uninformed investors and noise traders. The...
Journal of Financial Economics, 141(3), 831-859
We model banks’ liquidity holding decision as a simultaneous game on an interbank borrowing network. We show that at the Nash equilibrium, the...
Journal of Financial Economics, 109 (2). pp. 566-582.
We propose a new theory of suboptimal risk-taking based on contractual externalities. We examine an industry with a continuum of firms. Each firm’s...
