Professor of Management. Merton’s research focuses on finance theory, including lifecycle and retirement finance, optimal … portfolio selection, capital asset pricing, pricing of derivative securities, credit risk, loan guarantees, financial innovation …

innovation. To this end, we extend Boz and Mendoza (2014) by explicitly modelling the credit markets and by modifying the …

We explore empirically how the time-varying allocation of credit across firms with heterogeneous credit quality matters … credit allocation, captured by Greenwood and Hanson (2013)'s ISS indicator, helps predict downside risks to GDP growth and … systemic banking crises, two to three years ahead. Our analysis indicates that the riskiness of credit allocation is both a …