RESEARCH TOPICS

I study financial institutions’ and markets’ impact on 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