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.
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: