Publications of Kathy Yuan

We develop a dynamic model of DeFi lending that incorporates the following key features: 1) borrowing and lending are decentralized, anonymous...

The Review of Economic Studies, 90(6), 3282–3314

Borrowers obtain liquidity by issuing securities backed by current period payoff and resale price of a long-lived collateral asset. They are privately...

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

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

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...

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...