in comovement is related to information problems. … market returns (R2), reflecting increased comovement after inclusion between the added stock and rest of the index. In … post-inclusion increase in comovement is positively correlated with the presence of index-oriented institutional investors …

It is well known that the neoclassical model does not generate comovement among macroeconomic aggregates in response to … the neoclassical model. We present an open economy model that generates comovement both in response to sudden stops and to … news about future productivity and investment-specific technical change. We find that comovement is easier to generate in …

markets using a flexible approach that allows us to investigate whether the co-movement is: (i) symmetric and occurring most … dependence may lead to wrong evidence of asymmetry. Third, a growing comovement between industrial metals and equity markets is … identified as early as in 2003, a comovement that spreads to all commodity classes and becomes unambiguously stronger with the …

state and regulators are not necessarily independent. Among other things, we show that firms invest more, issue more debt …

leveraged banks’ precautionary demand for liquidity. When adverse asset shocks materialize, a bank’s ability to roll over debt …

further loans to help service the debt. Since deposits are mainly short-term and loans are long-term, the short-run demand for …

I analyze how lack of commitment affects the maturity structure of sovereign debt. Governments balance benefits of … default induced redistribution and costs due to income losses in the wake of a default. Their choice of short- versus long …-term debt affects default and rollover decisions by subsequent policy makers. The equilibrium maturity structure is shaped by …

aggressive', in which case they accept negative-NPV projects. In the first case, the uniquely optimal security is debt. In the … second case, it is levered equity. Debt maximizes lenders’ payoffs from financing low-NPV projects, i.e., projects that have … that are relatively likely to break even are financed with debt, while less profitable projects are financed with equity …