This paper develops a simple equilibrium model of CEO pay. CEOs have differenttalents and are matched to firms in a competitive assignment model. In market equilib-rium, a CEO s pay changes one for one with aggregate firm size, while changing muchless with the size of his own firm. The model...

Since the Fall of 2008, out-of-the money puts on high interest rate currencies have become significantly more expensive than out-of-the-money calls, suggesting a large crash risk of those currencies. To evaluate crash risk precisely, we propose a parsimonious structural model that includes both...