We propose a general equilibrium framework to analyze the cross-sectional distribution of credit and its exposure to shocks to the... Read More
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We characterize optimal contracts in settings where the principal observes informative signals over time about the agent’s one-time action. If... Read More
The paper develops a theory for equity premium around macroeconomic announcements. Stock returns realized around pre-scheduled macroeconomic announcements, such as... Read More
This paper investigates the strategic foundations for rational expectations equilibrium. In the model, risk-averse traders with two signals—private information and... Read More
Firms often choose to raise capital from multiple creditors even though doing so may lead to inefficient liquidation caused by... Read More