Discussion Papers

We develop a theory of liquidity transformation performed by market participants. An in-kind wrapper (e.g., a corporate bond ETF), issued by a fee...

This paper explains why institutional reforms often fail to stimulate investment despite improving long-run fundamentals. We develop a real options...

This paper introduces a dynamic model of corporate investment that integrates misreporting incentives with leverage and growth option timing. Unlike...

This paper provides a novel efficiency rationale for progressive corporate taxation based on commitment problems in entrepreneurial finance. Poor...

We highlight the multiplier role of (public) safe assets by studying a model of a bank’s balance sheet. The bank optimally constructs a portfolio of...

How do copayments affect the benefits and costs of health insurance in low-income settings? We study this question in a field experiment in rural...

Skilled intermediaries can represent multiple investors, generating economies of scale in screening costs. However, locating competent intermediaries...

This paper analyses how firms respond to liquidity shocks when asset prices are endogenously determined through matching frictions. Building on...

Almost all firms repurchase shares through open-market repurchase programs. In contrast, issue methods are more diverse: at-the-market offerings...

We analyze how the use of artificial intelligence affects the monitoring and advisory relationship between CEOs and corporate boards. AI can serve as...

We construct a firm-specific profit uncertainty index and profit shocks for Swedish firms and their employees (1997-2017) using shrinkage methods on...

The canonical view of bankruptcy law is that it solves a market failure by imposing a collective choice process that supplants the market. We propose...

Can financial intermediaries help solve the externalities of the real-economy, even when all investors are purely return-driven? This paper develops a...

What determines whether and how regulations are reformed? We use a newly constructed data set of 3,590 successful and failed regulatory reforms in 189...

We study how firms choose to allocate control over strategic corporate decisions between shareholders and management in a historical setting where...

We present a model of biased promotions in which firm size, wages, and internal labor markets are endogenously determined in a competitive labor...