Discussion Papers

Economic research has often relied on a measure of external financial dependence that is constructed using U.S. data and applied to other countries...

The Canadian 6/49 Lotto©, despite its unusual payout structure, is one of the few government sponsored lotteries that has the potential for a...

In March 2017 the UK government will apply for Article 50 of the Lisbon Treaty to end its membership in the European Union. This unprecedented step...

We study optimal monetary policy in the presence of financial stability concerns. We build a model in which monetary easing can lower the cost of...

We study the effects of collateral constraints in an economy populated by investors with nonpledgeable labor incomes and heterogeneous preferences and...

We derive a formula that expresses the expected return on a stock in terms of the risk-neutral variance of the market and the stock’s excess risk...

This paper has two main objectives: first, to provide a formal definition of endogenous systemic risk that is firmly grounded in equilibrium dynamics...

We identify a new class of uncountable-compact discounted stochastic games for which existence of stationary Markov equilibria can be established and...

For a discounted stochastic game with an uncountable state space and compact metric action spaces, we show that if the measurable-selection-valued...

Using novel position and trading data for single-name corporate credit default swaps (CDSs), we provide evidence that CDS markets emerge as...

This paper presents evidence from 29 postcommunist countries that the economic transition has been more successful than the political transformation...

Mainstream macro-models have assumed away financial frictions, in particular default. The minimum addition in order to introduce financial...

Across countries, banks have less gender diverse boards than other firms. Bank board diversity is particularly low in countries with greater gender...

We study how competition among investors affects the efficiency of capital allocation, the speed of capital, and welfare. In our model, investors...

We present evidence that cultural proximity (shared codes, beliefs, ethnicity) between lenders and borrowers increases the quantity of credit and...

We study how efficient primary financial markets are in allocating capital when information about investment opportunities is dispersed across market...