We provide a first empirical analysis of firm commitments to reduce their carbon emissions. A growing fraction of publicly traded companies around the world have already voluntarily made commitments to attain reductions in their emissions by a certain date or to reduce the emission intensity of...

The question in which we are interested is how a market inhabited by multiple agents, about whom we are differentially uncertain, and who trade goods the use of which imposes a negative effect on others, is to be ideally regulated. We show that a priori asymmetric uncertainty, when combined with...

This paper studies endogenous liquidity crises as the result of information panics. Collective ignorance is welfare maximizing but it is fragile, susceptible to self-fulfilling fears about asymmetric information. When investors become worried about the potential of adverse selection, they raise...

This paper explains why crises follow periods of sustained banking profitability in an environment in which there is uncertainty about whether outcomes depend on the risk management skills of banks, or are just based on luck, in the spirit of Piketty's Model (1995) of “left-wing” and...

This paper studies the role of expectations and monetary policy in shaping the response ofthe economy to climate actions. We show that in a stochastic environment and without thestandard assumption of perfect rationality of agents, there is more uncertainty regardingthe time-path and the impact...

It is well known that movements in lending rates are asymmetric; they rise quickly and sharply, but fall slowly and gradually. Not known is the fact that the asymmetry is stronger the less developed a country's financial system is. This new fact is here documented and explained in a model with an...

We study optimal monetary policy in an environment in which firms' pricing and production decisions are subject to informational frictions. Our framework accommodates multiple formalizations of these frictions, including dispersed private information, sticky information, and certain forms of...

The study examines the predictability of 48 sovereign bond markets based on a strategy of 27,000 technical trading rules. These rules represent four popular trading rule classes, they are: moving average, filtering, support and resistance, and channel breakout rules, with numerous variants in...

Wealthier economies experience less frequent but more severe financial crises. To investigate this puzzle, we propose a model of collateralized lending in which: (1) borrowers endogenously determine collateral quality, and (2) lenders can produce costly information about collateral. In...