Stylized data shows a structural break in the integration of lending markets which coincides with the global financial crisis. During and after the crisis, banks actively reduced their share of foreign relative to domestic banking activity and lending in particular. This increase in lending...

This theoretical model analyzes the impact of interbank credit market dynamics on the resilience of the financial system. Based on a stochastic model of interbank market credit flows, lending in the interbank market is restricted by the availability of liquidity. Following a shock...

This paper investigates short-term effects of big tech start-up acquisitions on innovation empirically. Innovation research has found a strong positive, causal relationship between VC investment and innovation. Using this insight, we can explore the repercussions of big tech start-up...

Mutual funds' exposure to corporate bonds has brought concerns about risks arising from liquidity transformation back to the fore. With a focus on fund asset liquidity and investors, this paper explores the flow-performance relationship and the liquidity management of funds in the presence of...

Exploiting the natural experiment of the German reunification, we examine how consumers adapt to a new environment in their macroeconomic forecasting. We document that East Germans expect higher inflation and make larger forecast errors than West Germans even decades after reunification....

This paper analyzes the determinants of socially responsible investing (SRI) at the individual investor level. We examine data from an incentivized framed field experiment, which was part of a survey among a representative sample of financial decision makers in German households. Thus, we...

Investment funds are highly connected with each other, but also with the broader financial system. In this paper, we quantify potential vulnerabilities arising from funds' connectedness. While previous work exclusively focused on indirect connections (overlapping asset portfolios) between...

This paper studies the role of international investment funds in the transmission of global financial conditions to the euro area using structural Bayesian vector auto regressions. While cross-border banking sector capital ows receded significantly in the aftermath of the global financial...

This work explores the impact of 'Studentification' of a neighborhood on the profitability of investment in the housing market. The study breaks down the impact of students on the housing market into two areas: apartments for sale and apartments for rent. The Israeli housing market provides the...

Macroeconomic modeling in the context of a stochastic continuous-time environment has become more popular in recent years. Most of these models are based on stochastic differential equations to describe macroeconomic dynamics and stochastic uncertainty is mostly modeled by Brownian motions or...