Getting Rich on Government-Backed Mortgages
A branch manager gets home loans for borrowers with weak credit or low incomes—and taxpayers back him up. Prashant Gopal Bloomberg Businessweek May 24, 2018 External Link
Credit Constraints and Labor Supply: Evidence from Bank Branching Deregulation
This paper examines labor supply adjustment‐both at the intensive and extensive margins‐following financial market development. Specifically, we exploit the staggered passage of bank branching deregulation in the United State to [...]
Towards an Unstable Hook: The Evolution of Stock Market Integration Since 1913
We examine equity market integration for 17 countries from 1913-2018. We use network analysis to measure the evolution of global stock market integration as well as stock market integration between [...]
On the Direct and Indirect Real Effects of Credit Supply Shocks
We consider the real effects of bank lending shocks and how they permeate the economy through buyer-supplier linkages. We combine administrative data on all firms in Spain with a matched [...]
A Macroprudential Theory of Foreign Reserve Accumulation
This paper proposes a theory of foreign reserves as macroprudential policy. We study an open economy model of financial crises, in which pecuniary externalities lead to overborrowing, and show that [...]
Bank Networks and Systemic Risk: Evidence from the National Banking Acts
The National Banking Acts (NBAs) of 1863–1864 established rules governing the amounts and locations of interbank deposits, thereby reshaping the bank networks. Using unique data on bank balance sheets and [...]
Why Do Individual Investors Disregard Accounting Information? The Roles of Information Awareness and Acquisition Costs
We investigate the frictions that impede individual investors’ use of accounting information and, in particular, their costs of monitoring and acquiring accounting disclosures. We do so using an archival setting [...]
Markets for Financial Innovation
We propose a model where both security design and market structure are endogenously determined to explain why standardized securities are frequently traded in decentralized markets. We find that issuers offer [...]
Policy uncertainty, investment, and the cost of capital
We examine the effect of economic policy uncertainty on the relation between investment and the cost of capital. Using the news-based index developed by Baker et al. (2016) for twenty-one [...]
Economic Consequences of Housing Speculation
By exploiting variation in state capital gains taxation as an instrument, we analyze the economic consequences of housing speculation during the U.S. housing boom in the 2000s. We find that [...]