Papers

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

Douglas Xu, Shiyang Huang , Lin William Cong (叢林)   Dec 30,2023

Working Paper No.00133-00

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

The Tokenomics of Staking

Zhiheng He,Ke Tang, Lin William Cong (叢林)   Dec 30,2023

Working Paper No.00134-00

Blockchain-based platforms and decentralized finance prominently features ``staking'': Besides offering a convenience yield for transactions as digital media of exchange,... Read More

A Theory of Liquidity Spillover Between Bond and CDS Markets

Batchimeg Sambalaibat   Jul 07,2021

Working Paper No.00072-00

I build a search model of bond and credit default swap (CDS) markets with endogenous investor participation and show that... Read More

Demand Disagreement

Christian Heyerdahl-Larsen, Philipp Illeditsch   Dec 13,2019

Working Paper No.00058-00

We develop an overlapping generations model with disagreement about the cross-sectional distribution of investors’ preferences and beliefs. This disagreement implies... Read More

Pricing and Liquidity in Decentralized Asset Markets

Semih Uslu   Mar 27,2019

Working Paper No.00050-00

I develop a search-and-bargaining model of endogenous intermediation in over-the-counter markets. Unlike the existing work, my model allows for rich... Read More

Published: Econometrica, 2019, 87(6), 2079-2140

Learning in Crowded Markets

Peter Kondor , Adam Zawadowski   Mar 12,2018

Working Paper No.00031-00

We study a capital reallocation problem in which  investors can enter into a new market where they compete with each other... Read More