Publications

Corporate credit lines are drawn more heavily when funding markets are more stressed. This covariance elevates expected bank funding costs. We show that credit supply is inefficiently dampened by the associated debt-overhang cost to bank…

We study the extent to which creditors shape the executive bonus plans of their financially distressed borrowers. Financial distress can exacerbate agency conflicts between creditors and borrowers as concerns with underinvestment become more…

How can we build trust, especially in polarized societies? We propose that exposure to broad financial markets—where individuals place their assets in the hands of large groups of unfamiliar agents who nonetheless have the incentive and ability…

We analyze survey data on ESG beliefs and preferences in a large panel of retail investors linked to administrative data on their investment portfolios. The survey elicits investors’ expectations of long-term ESG equity returns and asks about…

We examine whether access to specialized business courts that are more proficient in resolving contractual disputes influences the design of firms’ supply contracts. We use the staggered creation of these courts in different states at different…

Regression discontinuity designs assess causal effects in settings where treatment is determined by whether an observed running variable crosses a prespecified threshold. Here, we propose a new approach to identification, estimation and inference…

The Federal Reserve’s “balance-sheet normalization,” which reduced aggregate reserves between 2017 and September 2019, increased repo rate distortions, the severity of rate spikes, and intraday payment timing stresses, culminating with a…

The change in the cost of capital that results from a divestiture strategy can be closely approximated by a simple function of three parameters: (1) the fraction of socially conscious capital, (2) the fraction of targeted firms in the economy and…

Using data from TransUnion, a large U.S. credit bureau, we analyze whether and how cuts in bank income taxation are passed through to the interest rates and size of consumer loans. Exploiting the change in bank corporate income taxation from the…

While computer vision has gained traction in medical applications, models specifically engineered for intensive care unit (ICU) activities are limited.

We present Clinical Behavioral Atlas (CBA), a computer vision system that can identify…

We document the growth of retail options trading and provide evidence that retail investors are drawn to options by anticipated spikes in volatility. Retail investors purchase options in a concentrated fashion before earnings announcements,…

We examine the spillover effects of public firm disclosures on patent licensing, a key mechanism for technology diffusion. An interquartile increase in public firm presence, our proxy for peer disclosures, is linked to a 20.7% higher likelihood…

Many studies document low rates of financial literacy and suboptimal levels of participation in financial markets. These issues are particularly acute among women. Does this reflect a self-reinforcing trap? If so, can a nudge to participate in…

Tackling administrative waste in the health care system presents a perfect opportunity for a second Trump administration that is focused on achieving efficiencies in the federal government and alleviating the pain that inflation has caused on the…

Effective information sharing is critical for the success of organizations and governments. Because information that is easy to access is more likely to be adopted, leaders often minimize friction in information delivery. However, one type of…

Importance: Few studies have examined the extent to which employers emphasize financial over nonfinancial criteria in measurement, reporting, and decision-making about health care benefits.

Objective: To…

We model the “feedback effect” of a firm’s stock price on investment in projects exposed to a systematic risk factor, like climate risk. The stock price reflects information about both the project’s cash flows and its discount rate. A cash-flow-…

We show that financial reporting influences consumer behavior by drawing consumer attention to announcing firms. Analyzing global positioning system (GPS) data, we document upticks in foot traffic to firms’ commercial locations immediately…

Weaknesses in the design of the market for US Treasuries have reduced the effectiveness of world’s favored safe-haven asset. Since the Global Financial Crisis, the market’s intermediation capacity is far more constrained by the balance sheets of…