Endogenous Specialization and Dealer Networks

Batchimeg Sambalaibat   2017

We build a directed search model of network formation. We propose that a core-periphery interdealer network arises from dealer specialization. Read More

Only time will tell: A Theory of Deferred Compensation

Florian Hoffmann, Roman Inderst,Florian Hoffmann, Roman Inderst, Marcus Opp   2017

We characterize optimal contracts in settings where the principal observes informative signals over time about the agent's one-time action. If... Read More

Disclosure, Competition, and Learning from Asset Prices

Liyan Yang   2017

This paper studies the classic information-sharing problem in a duopoly setting in which firms learn information from a financial market.... Read More

Securitization, Ratings, and Credit Supply

Brendan Daley , Victoria Vanasco Brett Green   2017

We show that the availability of credit ratings (or other public information) increases the allocative efficiency of cash flows by... Read More

An Equilibrium Model of Housing and Mortgage Markets with State-Contingent Lending Contracts

Alexei Tchistyi , Tomasz Piskorski   2017

We develop a tractable general equilibrium framework of housing and mortgage markets with aggregate and idiosyncratic risks, costly liquidity and... Read More

Regulating a model

Bilge Yilmaz, Bilge Yilmaz, Yaron Leitner   2017

We study a situation in which a regulator relies on risk models that banks produce in order to regulate them.... Read More

Information Aggregation in Dynamic Markets with Adverse Selection

Brett Green , William Fuchs , Vladimir Asriyan Vladimir Asriyan   2017

How efectively does a decentralized marketplace aggregate information that is dispersed throughout the economy? We study this question in... Read More

Sentiment, Liquidity and Asset Prices

Brett Green , William Fuchs Vladimir Asriyan   2017

We study a dynamic market for durable assets, in which asset owners are privately informed about the quality of... Read More

Commodity Financialization and Information Transmission

Itay Goldstein , Liyan Yang   2017

We study how commodity financialization affects information transmission and aggre- gation in a commodity futures market. The trading of... Read More

Employee Bargaining Power, Inter-Firm Competition, and Equity-Based Compensation

Francesco Bova, Liyan Yang   2017

We develop a model to illustrate that equity-based compensation for non-executive employees and product market decisions are related. When... Read More