Cyber risk as systemic risk
The threat to the financial system posed by cyber risk is often claimed to be systemic. This column argues against this, pointing out that almost all...
Insurance and systemic risk: No easy conclusions
The IMF’s latest Global Financial Stability Report devotes for the first time a chapter to the systemic risks potentially associated with the...
Macro-Modelling, Default and Money
Mainstream macro-models have assumed away financial frictions, in particular default. The minimum addition in order to introduce financial...
Women in Finance
Across countries, banks have less gender diverse boards than other firms. Bank board diversity is particularly low in countries with greater gender...
Learning in Crowded Markets
We study how competition among investors affects the efficiency of capital allocation, the speed of capital, and welfare. In our model, investors...
Stress Testing and Macroprudential Regulation: A Transatlantic Assessment
This CEPR Press eBook presents the perspectives of policymakers, stress test designers and academics on the remarkable development of stress testing...
Stress testing and macroprudential regulation: A transatlantic assessment
Since the onset of the Global Crisis in 2007-08, stress testing has emerged as a major component of the supervisory toolkit. This column introduces a...
Cultural Proximity and Loan Outcomes
We present evidence that cultural proximity (shared codes, beliefs, ethnicity) between lenders and borrowers increases the quantity of credit and...
An Information Based One-Factor Asset Pricing Model
Given a set of asset returns, an information-theoretic approach is used to estimate non-parametrically the pricing kernel to price the given cross...
Downside Risk Neutral Probabilities
Risk neutral probabilities are adjusted to take into account the asset price effect of risk preferences. This paper introduces downside (respectively...
Informational Black Holes in Financial Markets
We study how efficient primary financial markets are in allocating capital when information about investment opportunities is dispersed across market...
The Systemic Risk Buffer for UK Banks: A Response to the Bank of England's Consultation Paper
On 29 January 2016 the Bank of England (2016a) published for consultation the Financial Policy Committee’s proposed framework for the systemic risk...
European Venture Capital: myths and facts
We examine the determinants of success in venture capital transactions using the largest deallevel data set to date, with special emphasis on...
