Discussion Papers

We show that the standard econometric framework typically yields inconsistent estimates of price discovery measures in the presence of richer market...

We formulate a price discovery model in which the price discovery measures vary either locally, say, for instance, at intervals of 30 minutes or at a...

We present a model of biased promotions in which firm size, wages, and internal labor markets are endogenously determined in a competitive labor...

We study how late payment in public procurement affects corporate policies by analyzing a public program that unexpectedly repaid local government...

I test the predictions of human memory models in a high-stakes trading environment. Using alphabetical rankings of stocks from portfolio statements, I...

We analyze 18 quadrillion models for the joint pricing of corporate bond and stock returns. Strikingly, we find that equity and nontradable factors...

We introduce a measure of a government’s fiscal position that exploits cointegrating relationships among fiscal variables. The measure is a loglinear...

Using granular data covering both regulated (brokerage-financed) and unregulated (shadowfinanced) margin accounts in China, we provide novel evidence...

We propose a novel measure, dubbed “relative basis,” to better capture the commodity convenience yield. Our measure is the difference between the...

Bank board directors are highly independent but possess limited prior banking experience. Using a sample of banks from 90 countries between 2000 and...

We examine how ESG disclosure mandates introduced in the headquarters countries of business groups affect the ESG performance of both parent companies...

To evaluate a bank’s resilience to financial stress, authorities often rely on private information from a peer institution, or counterparty. This...

Complexity can create value. At the same time, understanding more complex goods requires more of an agent’s attention. We show that equilibrium...

We derive option-implied bounds on the probability of a crash in an individual stock, and argue a priori that the lower bound should be close to the...

The rapid adoption of artificial intelligence (AI) poses new and poorly understood threats to financial stability. We use a game-theoretic model to...

This paper uses credit bureau data on 648 million retail loans in India to examine the comparative advantages of shadow banks across market segments...