Working Papers
"The Impact of the Dodd-Frank Act on Small U.S. Banks" (new version coming soon). Revise and resubmit at Journal of Money, Credit and Banking
Best Paper Awards in Financial Markets & Institutions Semifinalist, FMA 2022
Abstract: I develop and estimate a dynamic banking model to quantify the impact of the Dodd-Frank Act on small banks and bank entry in the U.S. The model features a bank portfolio-choice problem with a risk-return trade-off in the loan market. My counterfactual experiments uncover a novel regulatory dis-synergy: while tighter capital requirements mitigate bank risk, higher compliance costs create a risk-seeking incentive for banks. The interaction of the two creates a strong destabilizing effect that aggravates bank failures in the short run. Additionally, I find that increases in regulatory burdens explain about 80% of the collapse of bank entry since 2010.
Work in Progress
"On Balance Sheet Spillovers from Nonbanks to Banks"(with Dean Corbae and Pablo D'Erasmo).
AFA 2024