We examine a crowdfunding platform that connects artists with funders. Although the internet reduces many distance-related frictions, local and distant funders exhibit different funding patterns. Local funders appear less responsive to information about the cumulative funds raised by an artist....

We examine the influence of physical proximity on between-startup knowledge spillovers at one of the largest technology co-working hubs in the United States. Relying on the random assignment of office space to the hub's 251 startups, we find that proximity positively influences knowledge...

Stablecoins can support low-cost, instantaneous payment rails that are interoperable and programmable. This can increase competition in financial services, reduce the cost of accepting digital payments for small and medium businesses, and foster greater financial inclusion among segments that...

Stablecoins have the potential to drastically increase competition and innovation in financial services by reducing our reliance on traditional intermediaries. But they also introduce new challenges, as regulators rely on intermediaries to ensure financial stability, market integrity, and...

We develop a simple theoretical framework for thinking about how geographic frictions, and in particular travel costs, shape scientists' collaboration decisions and the types of projects that are developed locally versus over distance. We then take advantage of a quasi-experiment - the...

The US plays a key role in the global financial system. At the same time, its payments system lags behind the global frontier. The primary task of any payment system is to move value in a low cost, convenient, and timely manner. Across all of these dimensions, the US experiences substantial...

Stablecoins are cryptocurrencies designed to trade at par with a reference asset, typically the U.S. Dollar. While they all share the same fundamental objective of maintaining stability against their reference assets, stablecoins differ substantially in terms of their economic design, quality of...

Cryptocurrency systems based on proof of stake (PoS) grant governance rights to the holders of currency tokens and therefore are vulnerable to attack by adversaries who buy tokens in order to gain control. To evaluate the robustness of PoS cryptocurrencies to such attacks, we model the market...

US regulators have suggested that only FDIC-insured financial institutions be allowed to issue stablecoins. We propose an alternative path, which provides similar guarantees in terms of financial resilience, but without the same narrow restriction on issuers and negative consequences on...