In this article we use a novel clustering approach to study the role of heterogeneity in asset pricing. We present evidence that the equity premium is consistent with a stochastic discount factor (SDF) calculated as the average of the household clusters’ intertemporal marginal rates of...

The UK is due to move to a system of real-time gross settlement (RTGS) later this year. Although the decision to move to RTGS was based on prudential concerns, this paper considers whether it has any implications for the implementation of monetary policy. In particular, the move could, in...

Corporate bond ETFs provide stable funding to US companies, with pricing and real effects. ETF ownership reduces the yield spreads for bonds directly owned and for the other bonds of the same issuer. This lower cost of debt enables financially constrained firms to invest in risky projects....

We evaluate some budgetary implications of having cannabis regulated as tobacco was in Italy in 2007-2008. Depending on which scenario would have followed this shift of regime, the fiscal revenues from sale and income tax would have been between 7,5 and 13 billions of euros, moreover 830 million...

This paper proposes a new empirical measure of disinflation credibility and applies it to the IMF-supported disinflation program in Turkey since the 2001 crisis. This measure relies only on the consumer price index and can thus be easily applied in countries in which asset prices and survey...