Contractual Externalities and Systemic Risk
The Review of Economic Studies, Volume 84, Issue 4, Pages 1789–1817.
Competitive Screening of Customers with Non-Common Priors
This paper provides an explanation for the variety of contracts offered by competitive firms for seemingly identical products or services. I show that...
Business Regulation and Poverty
Using panel data for 189 economies from 2004 to 2016, we show that business-friendly regulations are correlated with the poverty headcount at the...
A Tale of Two Indexes: Predicting Equity Market Downturns in China
Predicting stock market crashes is a focus of interest for both researchers and practitioners. Several prediction models have been developed, mostly...
The Dynamics of Financially Constrained Arbitrage
We develop a model in which financially constrained arbitrageurs exploit price discrepancies across segmented markets. We show that the dynamics of...
International Liquidity
Global or international liquidity has moved to centre stage in recent international policy, research and market discussions. Contrary to the approach...
Financial Markets where Traders Neglect the Informational Content of Prices
We present a model of a financial market where some traders are “cursed” when investing in a risky asset, failing to fully appreciate what prices...
The Quanto Theory of Exchange Rates
We present a new, theoretically motivated, forecasting variable for exchange rates that is based on the prices of quanto index contracts, and show via...
Performance-induced CEO turnover
This paper revisits the relationship between firm performance and CEO turnover. We drop the distinction between forced and voluntary turnovers and...
Skills Diversity in Unity
At any point in time, skills gaps, mismatches, and shortages arise because of an imperfect correspondence between the singular sets of skills required...
Trend Growth Durations & Shifts
Policymakers and investors often conceptualize trend growth as simply a medium/long term average growth rate. In practice, these averages are usually...
Executive Compensation: A Survey of Theory and Evidence
This paper reviews the theoretical and empirical literature on executive compensation. We start by presenting data on the level of CEO and other top...
Fundamentals versus market sentiments in the euro bond markets: Implications for QE
Despite the partial realignment of European long-term government bonds after the crisis in 2012, there has been some renewed divergence in yields in...
Determinants of Regulatory Reform
Using panel data for 189 economies from 2004 to 2016, we show that regulatory reform is associated with periods of fiscal imbalances. This association...