Papers
Uploaded: Oct 8, 2017
Only time will tell: A Theory of Deferred Compensation
We characterize optimal contracts in settings where the principal observes informative signals over time about the agent's one-time action. If both are risk-neutral contract relevant features of any signal process can be represented by a deterministic informativeness process that is...
Published: American Economic Review, 2020
Bargaining and News
We study a bargaining model in which a buyer makes frequent offers to a privately informed seller, while gradually learning about the sellerās type from ānews.ā We show that the buyerās ability to leverage this information to extract more surplus...
Uploaded: Mar 15, 2017
Information Tradeoffs in Dynamic Financial Markets
In dynamic financial markets the stochastic supply of risky assets has a significant informational role. Contrary to static models, where it acts as "noise," in dynamic markets stochastic supply contains information about risk premiums. Acquiring private dividend information helps investors...
Uploaded: Mar 15, 2017
Rational-expectations whiplash
We present a financial market with investors who have nested private information. Small perturbations of price informativeness, originating from fat-finger errors or algorithmic glitches of well-informed investors, can trigger an oscillating shock throughout the economy that destabilizes the feedback loop...
Uploaded: Feb 1, 2017
Bank capital and the composition of credit
We propose a general equilibrium framework to analyze the cross-sectional distribution of credit and its exposure to shocks to the financial system, such as changes to bank capital, capital requirements, and interest rates. We characterize how over- and underinvestment in...
Uploaded: Jan 6, 2017
Risk Preferences and the Macro Announcement Premium
The paper develops a theory for equity premium around macroeconomic announcements. Stock returns realized around pre-scheduled macroeconomic announcements, such as the employment report and the FOMC statements, account for 55% of the market equity premium during the 1961-2014 period, and...
