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Financial Restructuring and Resolution of Banks

Denis Gromb (in memoriam) Jean-Edouard Colliard   Mar 22,2024

Working Paper No.00065-01

How do resolution frameworks affect the private restructuring of distressed banks? We model a bank’s shareholders and creditors negotiating a... Read More

Siphoned Apart: A Portfolio Perspective on Order Flow Segmentation

Bart Yueshen Zhou, Markus Baldauf Joshua Mollner   May 16,2024

Working Paper No.00094-01

We study liquidity supply in fragmented markets. Market makers intermediate heterogeneous order flows, trading off spread revenue against inventory costs.... Read More

Published: Journal of Financial Economics, 2024, 154(), 103807-

Competition and Information Leakage

Markus Baldauf Joshua Mollner   May 17,2024

Working Paper No.00096-01

When seeking to trade in over-the-counter markets, institutional investors typically restrict both the number of potential counterparties they contact and... Read More

Published: Journal of Political Economy, 2024, 132(5), 1603-1641

Block Trade Contracting

christoph frei, Markus Baldauf Joshua Mollner   Jun 12,2024

Working Paper No.00095-02

We study the optimal execution problem in a principal-agent setting. A client contracts to purchase from a dealer. The dealer... Read More

Published: Journal of Financial Economics, 2024, 160(), 103901-

Hysteresis in price efficiency and the economics of slow moving capital

James Dow , Jungsuk Han Francesco Sangiorgi   Jun 24,2024

Working Paper No.00140-00

Will arbitrage capital flow into markets experiencing shocks, mitigating adverse effects on price efficiency? Not necessarily. In a dynamic model... Read More

Free entry in a Cournot market with overlapping ownership

Orestis Vravosinos, Xavier Vives   Aug 01,2024

Working Paper No.00130-02

We examine the effects of overlapping ownership among existing firms deciding whether to enter a product market. We show that... Read More

Information Technology and Lender Competition

Zhiqiang Ye, Xavier Vives   Aug 01,2024

Working Paper No.00129-01

We study how information technology (IT) affects lender competition, entrepreneurs’ investment, and welfare in a spatial model. The effects of... Read More

Fintech Entry, Lending Market Competition, and Welfare

Zhiqiang Ye, Xavier Vives   Aug 01,2024

Working Paper No.00141-00

We study fintech entry and how it affects competition, investment, and welfare in a spatial model. We find that fintechs... Read More

The Rise of Factor Investing: Asset Market Implications and "Passive" Security Design

Douglas Xu, Shiyang Huang Lin William Cong (叢林)   Nov 21,2024

Working Paper No.00133-01

We model financial innovations such as Exchange-Traded Funds, smart beta products, and many index-based vehicles as composite securities (CSs) that... Read More

Production, Trade, and Cross-Border Data Flows

Qing Chang,Longtian Zhang,Liyong Wang, Lin William Cong (叢林)   Nov 21,2024

Working Paper No.00135-01

We build a tractable general equilibrium model to analyze the effects of cross-border data flows and pre-existing development gaps in... Read More