This paper identifies racial neighborhood effects at the transaction level. By matching two large micro-datasets (ZTRAX and HMDA) for the state of Virginia, we pin down the impact of a marginal change of racial composition in a neighborhood by looking at price impacts for transactions that...

There is an ongoing debate in the U.S. regarding the costs and benefits associated with statewide stay-at-home orders that were enacted in response to the COVID-19 outbreak. Many opponents of such orders claim that the economic cost, in terms of higher unemployment, may in-fact outweigh the...

We study the effect of immigration on home values in the U.S. Applying a county-level instrument for immigration, we find that immigration increases local house price appreciation and decreases its within-county spatial dispersion. Our estimates suggest that, on average, a one percentage point...

This study examines the role of distracted institutional investors in banks. We find that as institutional investors become distracted, banks create more liquidity, record significantly better loan portfolio performance, and higher bank value. In addition, large banks have lower insolvency risk...

The U.S. bank stress tests were introduced to improve the risk posture and management practices of large and complex banking institutions. This study investigates whether stress-tested banks in the U.S. converge to each other in their levels and determinants of profitability, as well as...

We investigate the effects of bank powers – regulatory permissions to engage in nontraditional activities – on liquidity creation, the most comprehensive measure of bank output. We find support for the empirical dominance of the synergies view over the scope diseconomies view. Additional...

Recent cascade of bank failures in the U.S. draws attention to investor behavior. In this study, we investigate herding behavior of investors in U.S. bank stocks during the pandemic quantitative easing (QE) and post-pandemic quantitative tightening (QT) periods. We find evidence on...