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Economic Growth through Diversity in Beliefs

Christian Heyerdahl-Larsen,Howard Kung, Philipp Illeditsch   Aug 20,2023

Working Paper No.00126-00

We study a macro-finance model with entrepreneurs who have diverse views about the likelihood that their ideas will lead to... Read More

Comparing Search and Intermediation Frictions Across Markets

Gabor Pinter, Semih Uslu   Aug 26,2023

Working Paper No.00127-00

In intermediated markets, trading takes time and intermediaries extract rents. We estimate a structural search-and-bargaining model to quantify these trading... Read More

Designing Stress Scenarios

Thomas Philippon, Cecilia Parlatore   Sep 25,2023

Working Paper No.00074-01

We study the optimal design of stress scenarios. A principal manages the unknown risk exposures of agents by asking them to... Read More

Contracting with a Present-Biased Agent: Sannikov meets Laibson

Alejandro Rivera   Sep 27,2023

Working Paper No.00128-00

This paper develops a methodology to solve dynamic principal-agent problems in which the agent features present-biased time preferences and naive... Read More

Blockchain Adoption in a Supply Chain with Manufacturer Market Power

Garud Iyengar,Jay Sethuraman,Wenjun Wang, Fahad Saleh   Oct 17,2023

Working Paper No.00079-01

We examine a supply chain with a single risk-averse manufacturer who purchases from suppliers and sells to consumers. Within this... Read More

Banks vs. Firms: Who Benefits from Credit Guarantees?

Alberto Martin,Sergio Mayordomo, Victoria Vanasco   Nov 14,2023

Working Paper No.00108-01

Governments often support private credit through guarantee schemes, which compen-sate private lenders in the event of borrower default. A key... Read More

Falling Interest Rates and Credit Reallocation: Lessons from General Equilibrium

Alberto Martin,Alejandro Van der Gothe,Luc Laeven, Victoria Vanasco , Vladimir Asriyan   Nov 15,2023

Working Paper No.00107-01

We show that in a canonical model with heterogeneous entrepreneurs, financial frictions, and an imperfectly elastic supply of capital, a... Read More

Market opacity and fragility: Why liquidity evaporates when it is most needed

Giovanni Cespa, Xavier Vives   Dec 04,2023

Working Paper No.00131-00

We show that, consistent with empirical evidence, access to order flow information allows traders to supply liquidity via contrarian marketable... Read More

The Short-Termism Trap: Catering to Informed Investors with Limited Horizons

James Dow , Jungsuk Han Francesco Sangiorgi   Dec 15,2023

Working Paper No.00132-00

Does the stock market exert short-term pressure on listed firms, do they respond, and is this response value reducing? We... Read More

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

Central Bank Digital Currency and Financial Stability

Peter Hoffmann,Agnese Leonello,Davide Porcellacchia, Toni Ahnert   Dec 20,2023

Working Paper No.00100-03

What is the effect of Central Bank Digital Currency (CBDC) on financial stability? We answer this question by studying a model... Read More