Kathy Yuan

We study a noisy rational expectations equilibrium in a multi-asset economy populated by informed and uninformed investors and noise traders. The...

The Review of Economic Studies, 84 (4): 1789-1817. 

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...

We study a model where a capital provider learns from the price of a firm’s security in deciding how much capital to provide for new investment. This...