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)