In this paper, we develop a methodology to assess potential losses to the government that could arise from bank failures. The approach is intended to be simple, parsimonious, and used in real time. It generates an index that we call the banking sector contingent liability index (BCLI), based on...

In this paper, we develop a methodology to assess potential losses to the government that could arise from bank failures. The approach is intended to be simple, parsimonious, and used in real time. It generates an index that we call the banking sector contingent liability index (BCLI), based on...

We report the results of a longitudinal intervention with students across five universities in China designed to reduce online consumer debt. Our research design allocates individuals to either a financial literacy treatment, a self-control training program, or a zero-touch control group....

We study risk taking in a panel of subjects in Wuhan, China - before, during the COVID-19 crisis, and after the country reopened. Subjects in our sample traveled for semester break in January, generating variation in exposure to the virus and quarantine in Wuhan. Higher exposure leads subjects...

This paper extends Merton's structural credit risk model to account for the fact that the firm's asset volatility follows a stochastic process. With the presence of stochastic volatility, the transformed-data maximum likelihood estimation (MLE) method of Duan (1994, 2000) can no longer be...

This paper examines the impact of allowing for stochastic volatility and jumps (SVJ) in a structural model on corporate credit risk prediction. The results from a simulation study verify the better performance of the SVJ model compared with the commonly used Merton model, and three sources are...

We study the effect of political corruption on household financial well-being using microdata from the United States and China. Our identification strategy exploits recent anti-corruption campaigns in China as exogenous shocks to the perceived level of corruption held by individuals. Households...

As one of the older but still widespread forms of superannuation in Australia, the majority of defined benefit funds in Australia have experienced significant deficits since the beginning of the global financial crisis. Due to the presence of complex actuarial assumptions and...