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I construct an index of sectoral dynamics to characterize changes in the sectoral composition of economic activity. There is evidence of asymmetry in different phases of business cycles with recessions being associated with larger changes in sectoral composition than expansions. I find that the...
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We argue that Schularick and Taylor's (2012) comparison of credit growth and monetary growth as financial-crisis predictors does not necessarily provide a valid basis for achieving one of their stated intentions: evaluating the relative merits of the "money view" and "credit view" as accounts of...
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Among growing concerns about potential financial stability risks posed by the asset management industry, herding has … investors herd in their trading of U.S. corporate bonds and quantify the price impact of such herding behavior. We find that …, relative to what is documented for the equity market, the level of institutional herding is much higher in the corporate bond …
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