-for-sale securities, unhedged securities, and banks that must include unrealized gains and losses in their regulatory capital. A … more banks are required to adjust their regulatory capital for unrealized value changes of securities ….S. bank securities, hedging positions, and corporate credit. Banks that experienced larger losses on their securities during …

rule limits arbitrage opportunities by restricting associated interest expense deductions. Prior to 1986, U.S. banks were … absence of a tax benefit from arbitrage appears not only in observed bond yields, but also in banks' considerable unused … not subject to the interest deduction limitation, making banks preferred holders of tax-exempt debt. U.S. banks used tax …

This paper revisits capital-skill complementarity and inequality, as in Krusell, Ohanian, Rios-Rull and Violante (KORV …. We find strong evidence for continued capital-skill complementarity in the most recent data, and that the model continues …

Covid-19 shock and the large response by all the major central banks provide a vivid illustration of the environment we seek …

We study a production economy with multiple sectors financed by issuing securities to agents who face capital … constraints. Binding capital constraints propagate business cycles, and a reduction of the interest rate can increase the required … return of high-haircut assets since it can increase the shadow cost of capital for constrained agents. The required return …

do so depends on their availability of funding. Conversely, traders' funding, i.e., their capital and the margins they … empirically documented features that market liquidity (i) can suddenly dry up, (ii) has commonality across securities, (iii) is …