This paper develops a model to analyze information aggregation in commodity markets. Through centralized trading, commodity prices aggregate dispersed information about the strength of the global economy among goods producers whose production has complementarity, and serve as price signals to...

We study the macroeconomic consequences of financial market concentration in a complete markets economy with production. We propose a theory in which differences in preferences, productivity, and risk exposure generate gains from trade, but these gains are not fully realized because some large...

Using data from Glassdoor, we show that firms transmit productivity shocks to workers through performance pay. Performance pay responds more than base to industry shocks, falling (rising) 17% in Finance (Information Technology) after the recent financial crisis. At the regional level,...

In the presence of informational frictions, bond markets aggregate the private information of firms and intermediaries, and bond prices serve as signals about the financial sector and the real economy. Such frictions amplify the credit constraints faced by intermediaries, depressing firm...

This paper develops a model to analyze information aggregation in commodity markets. Through centralized trading, commodity prices aggregate dispersed information about the strength of the global economy among goods producers whose production has complementarity, and serve as price signals to...

Financial market power is the ability to strategically influence asset prices. We analyze the resulting distortions to risk-sharing in a general-equilibrium model with oligopolistic financial markets. Contrary to perfect competition, distortions are most severe when markets are complete, risks...

We propose a dynamic theory of financial market concentration in settings where some investors trade strategically because of price impact. The distribution of risk and wealth determines market power, and wealth evolves over time given strategic portfolio choices. In equilibrium, the most...