the context of banks diversifying into the other bank's asset, which may potentially intensify a systemic risk. The … central results of the paper are as follows. When creditors punish the bank's excessive risk exposure by demanding higher risk … premium, the bank owners' optimal diversification will coincide with the diversification that maximizes the combined value of …

My dissertation focuses on topics in household finance and bank regulation. In chapter 1, I estimate the household … implications.In chapter 2 (joint with Divya Kirti), we present a model that describes how different types of bank regulation can … useful policy for limiting fire sales, but only if binding. Collectively, our findings suggest that bank regulation may have …