We consider a decentralized two-period supply chain in which a manufacturer produces a product and sells it through a retailer facing a price-dependent demand. We assume that the second period production cost declines linearly in the first-period production, but with a random learning rate. As...

Problem Definition: Product sharing is disrupting traditional industries, yet manufacturers do not have a clear dominant strategy on how to adapt to this trend. Moreover, a product sharing platform generally sets an entry barrier of product features and not all products are allowed to join it....

We study the functioning of the municipal bond market during the COVID-19 pandemic. The average offering yield increases while the number of new issues drops when county-level COVID-19 case and death counts rise. Exploiting the differential timing of local policy actions, we find that emergency...

The creation of the China-led AIIB has been the most important event in the international financial sphere in recent years, but the comments about it have often been made from a multitude of lenses, thus complicating the recognition of its real implication. By clarifying the inclinations...

In an "activist risk arbitrage," a shareholder attempts to reshape an announced M&A through public campaigns, profi ting from improved terms. Activists target deals with low premiums, and those susceptible to managerial conflicts of interest, including going-private deals and deals upon which...

We investigate the capital structure implications of corporate environmental liabilities, which are captured using the amount of firms' toxic production-related waste. We document that firms with higher environmental liabilities maintain lower financial leverage ratios, suggesting that...

We study optimal monetary policy, macro dynamics and their implications on the term structure of interest rates in a continuous-time New-Keynesian model. With a quadratic cost function and regime-dependent monetary discount rates, the time-consistent optimal monetary policy is regime-dependent...