This paper studies the effects of borrowers' balance sheet heterogeneity on economywide risks and fragility, together with effects from intermediary balance sheet channel. We build a continuous time heterogeneous agents model with financial frictions and analytically characterize the transition...

At the heart of economic and sociological thinking on divorce lies the idea that a couple divorces if at least one spouse expects to improve their life in doing so. De facto, divorces are predominantly initiated by one spouse alone. This might suggest that one spouse typically benefits from...

This paper identifies a precautionary banking liquidity shock via a set of sign, zero and forecast variance restrictions imposed. The shock proxies the reluctance of the banking sector to "lend" to the real economy induced by an exogenous change in financial intermediaries' preference for "high"...

What I would like to speak of in this piece is not only to discuss the way addiction is formulated by the practices and tactics of law whether through poverty law or otherwise, but to say that law itself is addition, and addiction is law. Combining desire and destruction through the work of...

We study utility indifference pricing of untradeable assets in incomplete markets using a symmetric asymptotic hyperbolic absolute risk aversion (SAHARA) utility function, both from the buyer's and seller's perspective. The use of the SAHARA utility function allows us to tackle the ``short...

This paper provides my reflections on the state of economic methodology and philosophy of economics as of the beginning of 2020 following the end a fifteen year co-editorship of the Journal of Economic Methodology with Wade Hands. It looks at how economic methodology and philosophy of economics,...

More people in the U.S. graduate from college than ever before. However, earning inequality has been rising (rather than declining) during the past 50 years. Whereas previous literature explained this puzzle by skill-biased technology changes, I argue that there must be additional factors, such...

Is reduction in supplier costs a significant channel for value creation by activist investors? Using a comprehensive sample of shareholder activism during 1994-2015, and addressing endogeneity concerns, we find significant economics effects on the profits and capital investment of the target's...

In this study, I theoretically analyze fake reviews on a platform market using models where a seller creates fake reviews through incentivized transactions, and its sales depend on its rating based on a review history. The platform can control the incentive for fake reviews by changing the...