Using data on balance sheets of both financial and nonfinancial sectors of the economy, we use a "demand system" approach to study how lender composition and willingness to provide credit affect the relationship between credit expansions and real activity. A key advantage of jointly modeling the...

I find that an asset's expected return is largely explained by its covariance with intermediary leverage for a broad cross-section of returns. A one-factor leverage model performs as well as standard multi-factor models on most dimensions and in particular helps explain the 30 Industry and 10...

Financial markets in Euroland differ from those of a national monetary union in two regards. First, capital markets in general and banking markets in particular show a greater degree of segmentation than national financial markets as a result of information costs and regulatory barriers to full...