Does income, preference, or belief heterogeneity matter for asset pricing? Starting with an irrelevance theorem due to Grossman and Shiller, this survey presents a unified view of the research that has studied the connection between heterogeneity and asset prices.
Link to the survey's website on Foundations and Trends in Finance
Slides are available here
What role is there for social distancing in restricting a pandemic? What is the welfare argument for social distancing mandates? What does it mean that Covid could become endemic? Does a vaccine necessarily eradicate a disease?
(New version coming soon)
In recent decades young firms have not created many jobs. But they have contributed to aggregate sales and aggregate market capitalization. What do these pieces of evidence imply for economic output and productivity in the long run?
Zombie Lending and Cross-Subsidization in a Lending Crisis (joint with N. Artavanis, B.J. Lee, M. Tsoutsoura)
Using a unique, detailed dataset we study the loan pricing decisions of a bank during the Greek financial crisis and document patterns of under-pricing loans with high breakeven rates. (new draft coming soon)
Why did interest rates start declining in the mid-eighties, while aggregate growth started declining fifteen years later? Understanding the different income and consumption profiles of different generations may hold the answer to these questions.
How does disruption affect the required discount rates across broad asset classes (private equity, venture capital, real estate, conventional equities, fixed income)? What are the portfolio implications of disruption from the perspective of an investor?
Does increased volatility lead to increased retained earnings? How do financing constraints impact investment decisions of firms? This paper provides new insights into these questions.
In regressions of the investment-capital ratio on average q and cash flow, the coefficient on average q doesn't isolate the impact of profitability and the coefficient on cash flow doesn't isolate the impact of financial constraints.