Publications

Both the euro-area and the United States suffered an initially quite similar housing and financial shock in 2007/8, with several states in both...

We study economies of scale in banking by viewing banks as combinations of financial and human capital that create rents which accrue to investors and...

We study managerial incentive provision under moral hazard in a firm subject to stochastic growth opportunities. In our model, managers are dismissed...

We study the unique governance dynamics surrounding family ownership in a voluntary regulatory arena where we can directly observe the impact of firm...

Short-term price movements have come to dominate.

In this paper we survey the theoretical and empirical literature on market liquidity. We organize both literatures around three basic questions: (a)...

We analyze how asymmetric information and imperfect competition affect liquidity and asset prices. Our model has three periods: agents are identical...

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 dynamic general equilibrium in one-tree and two-trees Lucas economies with one consumption good and two CRRA investors with heterogeneous...

Most of us have been brought up to believe that free markets combined with healthy competition deliver good outcomes. We also presume that what holds...

Review of Financial Studies, 25 (6). pp. 1845-1896. 

In choosing transparency, firms must trade off the benefits from better access to finance against the cost of a greater tax burden. We study this...

This paper analyzes the rationale for Bank Recovery and Resolution Funds (BRRFs) in the context of the present European Union’s (EU) decentralized...