This paper examines the distribution of Paycheck Protection Program loan dollars per employee across U.S. counties, using loan-level data released to the public by the U.S. Small Business Administration (SBA). Our multivariate analysis indicates a positive association between the degree of...

This paper attempts to quantify business cycle effects of bank capital requirements. The authors use a general equilibrium model in which financing of capital goods production is subject to an agency problem. At the center of this problem is the interaction between entrepreneurs' moral hazard...

This paper studies cyclical properties of the private risk premium in a model where a continuum of heterogeneous entrepreneurs are subject to aggregate as well as idiosyncratic risks, both of which are assumed to be highly persistent. The calibrated model matches highly skewed wealth and income...

This paper estimates the implicit capital requirements in the U.S. supervisory stress tests. Our results show that stress tests are imposing dramatically higher capital requirements on certain asset classes – most notably, small business loans and residential mortgages – than bank internal...

We use a top-down approach to estimate the amount of credit loss allowances under the current expected credit loss (CECL) methodology during the 2007-2009 financial crisis. The new standard will replace the incurred loss methodology that is used nowadays by banks. We find that CECL would have...

The macro spillover effects of capital shortfalls in the financial intermediation sector are compared across five dynamic equilibrium models for policy analysis. Although all the models considered share antecedents and a methodological core, each model emphasizes different transmission channels....

The macro spillover effects of capital shortfalls in the financial intermediation sector are compared across five dynamic equilibrium models for policy analysis. Although all the models considered share antecedents and a methodological core, each model emphasizes different transmission channels....