We study bank capital requirements as a tool to address financial risks and externalities
caused by carbon emissions. Capital regulation can effectively address climate-related …

We build a model analyzing optimal environmental regulation in the presence of socially
responsible investors. Investors care about sustainability of their portfolios but cannot fully …

We study how government policies and corporate commitments to decarbonize interact
under two externalities: environmental damages and green innovation spillovers …

This paper characterizes the optimal transaction tax in an equilibrium model of financial
markets. If investors hold heterogeneous beliefs unrelated to their fundamental trading …

This paper studies the optimal determination of deposit insurance when bank runs are
possible. We show that the welfare impact of changes in the level of deposit insurance …

Economics recommends combating climate change with carbon pricing, but green finance
(ESG investing, sustainable finance regulation) is becoming widespread. In a unified model …

This paper studies leverage regulation when equity investors and/or creditors have distorted
beliefs relative to a planner. We characterize how the optimal regulation responds to …

We analyze jointly optimal carbon pricing and financial policies under financial constraints
and endogenous climate-related transition and physical risks. The socially optimal …

This paper proposes an E-DSGE model with two layers of default to study the interactions
between bank regulation, climate change, and carbon taxes. Households value the liquidity …

This paper studies the equilibrium effect of public liquidity on financial crises. Banks borrow
from households via insured deposits and partially runnable debt, and suffer endogenous …