We find that shocks to the equity capital ratio of financial intermediaries—Primary Dealer
counterparties of the New York Federal Reserve—possess significant explanatory power for …

Economic rents have long been identified as an efficient tax base. In addition, the recent
literature documents that rent income is highly concentrated and that rents are quickly …

We compare and contrast production economies exposed to long-run uncertainty with
investors that have possibly different preferences and/or access to financial markets. We …

This paper investigates the origin and propagation of balance sheet recessions. I first show
that in standard models driven by TFP shocks, the balance sheet channel disappears when …

We present a tractable dynamic general equilibrium model of self-fulfilling bank runs, where
banks trade capital in competitive and liquid markets but remain vulnerable to runs due to a …

We develop aq theory of investment with endogenous leverage, payout, hedging, and risk-
taking dynamics. The key frictions are costly equity issuance and incomplete markets. We …

Abstract The Global Financial Crisis fostered the design and adoption of macroprudential
policies throughout the world. This raises important questions for monetary policy. What, if …

This paper proposes a flexible-price theory of the role of money in an economy with
incomplete idiosyncratic risk sharing. When the risk premium goes up, money provides a …

I study monetary and macroprudential policy intervention in a general equilibrium economy
with recurrent boom-bust cycles. forward-looking variables to also react to policy intervention …

We explain how the common practice of size-discovery trade detracts from overall financial
market efficiency. At each of a series of size-discovery sessions, traders report their desired …