RESEARCH

Inequality and Financial Fragility Journal of Monetary Economics, Vol. 115 (2020)

The distribution of wealth influences the government’s response to systemic banking crises and shapes financial fragility.

Allocating Losses: Bail-ins, Bailouts and Bank Regulation R&R Journal of Economic Theory

with Todd Keister

We study the interaction between a government's bailout policy and banks' willingness to impose losses on (or "bail in") their investors.

A Theory of Debt Maturity and Innovation

I propose a theory of debt maturity as an incentive device to motivate innovation when contracts are incomplete and shaped by ex-post renegotiation.

When do common owners facilitate collusion? The role of agency frictions and repeated interaction

with Konrad Adler

We study the incentives to sustain collusion in a simple dynamic model where - due to agency frictions - firm managers derive a short-term private benefit from deviating from collusion.

On the Relationship between Borrower and Bank risk

with Ulrich Schüwer

We present a model with a complex relationship between borrower risk and bank risk due to banks’ risk-shifting incentives and banking competition.

Unequal and Unstable: Income Inequality and Bank Risk

with Ulrich Schüwer

Regions in the U.S. with higher income inequality tend to have a riskier banking sector. We develop a theory to explain this pattern.

Private Sunspots in Games of Coordinated Attack

I introduce a new sunspot-based approach of endogenizing the probability of self-fulfilling outcomes in collective action games.

WORK IN PROGRESS

Partial deposits (with Todd Keister)

Anticompetitive effects of loan covenants (with Konrad Adler)

Policy induced fragility (with Todd Keister)