We develop a heterogeneous-agent model with local spatial markets to study the relationships among bank expansion, growth, and inequality. In the model, households choose their occupations, consumption, and holdings of loans and portfolio assets that vary by liquidity. Banks choose the locations...

How can banks and similar institutions design optimal compensation systems? Would such systems conflict with the goals of society? This paper considers a theoretical framework of how banks structure job contracts with their employees to explore three points: the structure of a socially optimal...

Using proprietary individual level loan data, this paper explores the economic consequences of the 2009 bank entry deregulation in China. Such deregulation leads to higher screening standards, lower interest rates, and lower delinquency rates for corporate loans from entrant banks. Consequently,...

Using comprehensive loan-level data in China, we investigate how the deregulation on bank entry barriers alters local banking industrial organization and its economic consequences. We document a novel trade-off: the potential benefits of deregulation are adversely mitigated by entrant banks'...

We use unique data on work hours of Federal Reserve bank supervisors and a structural model to provide new insights on the impact of bank supervision, the efficiency of the allocation of supervisory resources, and the shape of supervisory preferences. We find that supervision has an economically...

We study bank supervision by combining a theoretical model distinguishing supervision from regulation and a novel dataset on work hours of Federal Reserve supervisors. We highlight the trade-offs between the benefits and costs of supervision and use the model to interpret the relation between...

This is the supplemental material to the paper titled "Branch Expansion versus Digital Banking: The Dynamics of Growth and Inequality in a Spatial Equilibrium Model." It includes additional empirical, theoretical, and quantitative results. It also includes illustration for the numerical...