Introduction / Edward L. Glaeser, Tano Santos, and E. Glen Weyl -- Stochastic compounding and uncertain valuation / Lars Peter Hansen and José A. Scheinkman -- The good banker / Patrick Bolton -- How to implement contingent capital / Albert S. Kyle -- Bankruptcy laws and collateral regulation:...

Between 2000 and 2006, the CaseShiller/Standard and Poor's Housing Price Index increased by 74 percent in real terms, as America experienced a massive housing bubble. Moreover prices in some metropolitan areas grew even faster. Prices in Los Angeles, for example, rose by 130 percent during this...