NEWS / UPDATES

• New paper: Dynamic Asset (Mis)Pricing: Build-up vs. Resolution Anomalies [SSRN]

• New paper: Renegotiation in Debt Chains [SSRN]

• New paper: The Effectiveness of Life-Preserving Investments in Times of COVID-19 [SSRN]

RESEARCH TOPICS

I study financial institutions’ and markets’ impact on prices and allocative efficiency.

• Real anomalies - the aggregate real effects of financial market anomalies (alphas).

• Venture capital investments' impact on economic growth and welfare.

• The role of intermediation chains, disclosure, and security design in affecting the efficiency of over-the-counter (OTC) markets.

• How the desirability of information production shapes the relative efficiency of OTC and centralized markets.

• Regulations' impact on credit rating agencies' rating standards and the allocation of credit.

• Large shareholders' influence on inefficiencies associated with financial distress.

• The cross-sectional sensitivity of credit to shocks affecting bank capital.

METHODOLOGY

I have developed a modeling approach for granular dynamic economies that yields exact global solutions and only requires inverting sparse matrices. Several of my papers showcase this approach in settings with:

• Capital investment with adjustment costs

• Granular general equilibrium economies with persistent heterogeneity

• Optimal default

• Learning and information acquisition