investment projects and asymmetric information about the quality of securitized assets. I show that when retaining part of the … risk, the issuer of securitized assets may credibly signal its quality. However, in the boom stage of the business cycle … this practice is inefficient, information on asset quality remains private, and lower-quality assets accumulate on balance …

We propose a novel theory of financial contagion. We study global coordination games of regime change in two regions … attacks, bank runs and debt crises, our theory of contagion is supported by existing evidence and generates a new testable …