Publications of Paul Woolley

Atlantic Economic Journal, 51, 1–11

We study dynamic portfolio choice in a calibrated equilibrium model where value and momentum anomalies arise because capital slowly moves from under-...

The short-termism of corporate managers has been a recurring concern of policymakers for decades due to the close tie with mispricing in capital...

Exploitative momentum investing would shrivel in the absence of benchmarkers.

Obsession with short-term performance against market cap benchmarks preordains the dysfunctionality of asset markets. The problems start when trustees...

Review of Financial Studies, 28 (5): 1353-1380. 

We study the joint determination of fund managers’ contracts and equilibrium asset prices. Because of agency frictions, investors make managers’ fees...

Risk and return go hand in hand as companion variables central to the teaching and practice of economics and finance. Standard theory and common sense...

The Global Crisis has intensified debates over the merits of financial innovation and the optimal size of the financial sector. This column presents a...

The efficient market theory has failed to explain the market behavior and asset pricing of recent years. A new model that incorporates the principal...

Big investors currently pursue two very different strategies when appointing external managers. Their traditional approach is to hire fund managers...

Managers should focus on companies, not prices, says Paul Woolley.

Review of Financial Studies, 26 (5). pp. 1087-1145. 

Risk metrics should be based on asset cash flows.

The best way to resolve global financial instability is for the owners of capital to assert themselves, with sovereign funds well positioned to take...