Some important puzzles in macro finance can be resolved in a model featuring systematically varying volatility of unpriced shocks to firms' earnings. In the data, the correlation between corporate debt and stock market valuations is low. The model accounts for this via the opposing effect of...

"By the late twentieth century, Japan had gained worldwide attention as an economic powerhouse. Having miraculously risen from the ashes of World War II, it was seen by many as a country to be admired if not emulated. But by the early 1990s, that bubble burst in spectacular fashion. The Japanese...

Korean Abstract: 최근 전 세계 여러 국가의 아프리카 진출이 점차 가속화되고 있다. 최근 10년간 상당수 아프리카국가의 경제는 빠른 속도로 성장했으며 전 세계 각국의 아프리카 진출도 이러한 맥락에서 과거 자선적 성격의...

This paper presents a new approach to measure funding liquidity. The key idea is that, as borrowing constraints become more binding, speculators first withdraw from small stocks and then from large stocks since large stocks require lower margins. Given the speculators' role in liquidity...

Reform programs sometimes falter because they are politically infeasible. Policy change inevitably creates winners and losers, so those with vested interests strike bargains to determine how far and how quickly reform should advance. Understanding these micro political dynamics of reform can...

Reform programs sometimes falter because they are politically infeasible. Policy change inevitably creates winners and losers, so those with vested interests strike bargains to determine how far and how quickly reform should advance. Understanding these micro political dynamics of reform can...

Reform programs sometimes falter because they are politically infeasible. Policy change inevitably creates winners and losers, so those with vested interests strike bargains to determine how far and how quickly reform should advance. Understanding these micro political dynamics of reform can...