News:
I’m an economics professor again, after 26 years!
I wrote up a mini-essay on the costs and benefits of reproducibility in economics and finance.
I gave a keynote talk at the Society for Financial Econometrics meetings on reduced-form and structural work. Here are the slides.
Yufeng Wu, Kairong Xiao and I study the effects of central bank digital currency on bank lending. CBDC boosts banks funding costs but the effect on lending is muted. Bank lending is more responsive to monetary policy when there is a CBDC. The paper is here.
Li He, Ran Guo, and I have a newish paper that looks at the effects of relative performance evaluation on industry competition. We estimate a dynamic game of the airline industry. We find that RPE always dampens aggressive product market strategies because RPE makes CEO compensation depend heavily on the firm's cost advantage relative to its peers.
Ivan Ivanov, Luke Pettit and I have a new paper that shows that taxes depress firm leverage. The picture below from the paper says it all. We then estimate a model to show that movements in default thresholds explain the reduced-form result.
Paul Borochin, Murat Celik, Xu Tian, and I have a new paper on event studies! Without using data on firm characteristics, we estimate heterogeneity in the impact of aggregate events. This picture is an application to the TCJA.
Stefan Nagel, Itay Goldstein, and I issued this statement regarding referee confidentiality.
Me having fun!
Me working!