provide a framework with microeconomic foundations that give rise to matching frictions, which can be used to understand the … indeed, more frequently used aggregate matching technology. Existing differences turn out to be crucial for the empirical …

information frictions, and to analyze the impact of monetary policy on equilibrium outcomes. The main results show that private … information regarding the quality of an asset impairs its liquidity and reduces both trading volume and consumption. As a … money, as observed since the eruption of the global financial crisis. A policy intervention replacing information sensitive …

In this paper we challenge basic results of signaling models. In our banking model each project of a borrower is …

In this paper we challenge basic results of signaling models. In our banking model each project of a borrower is … of riskiness of the borrower to the lender. In most cases the equilibrium is a pooling equilibrium. -- Signaling …

negligible information frictions, our proposed program achieves the first-best outcome at zero expected cost …

This paper introduces two simple betting mechanisms, Top-Flop and Threshold betting, to elicit unverifiable information …

collects data that contains information about the firm's id- iosyncratic private characteristics. This paper studies the case … in which the regulator uses information gleaned from past cost observations when designing the current pe- riod …'s contract. Cost observations are obscured in stochastic settings and so perfect inferences about underlying private information …

Misrepresenting private information is often costly. This paper studies a model of strategic information transmission … based on Crawford and Sobel (1982)(CS), but with a signaling dimension where there is a convex cost of misreporting. I … weakly prefers the action it elicits in the equilibrium to what it would elicit in the complete-information game. I also …

This paper aims to study the impact of costly and private information acquisition in global games with applications in … financial crisis (e.g. bank runs, currency crisis). While exogenous asymmetric information has been shown to select a unique … equilibrium, we show that the endogenous costly information acquisition can lead to multiple equilibria. Moreover, we show …