Out of sight, out of mind: Divestments and the Global Reallocation of Pollutive Assets [Link to SSRN version] (with Lin Ma and Daniel Streitz), prior title: Climate Risk and Strategic Asset Reallocation
Large firms in the limelight reduce carbon emissions; however, this effect is entirely driven by divestments.
CBDCs, Payment Firms, and Geopolitics (with Valentin Burg, Jan Keil, and Manju Puri) [Link to SSRN version]
Analyzes the anticipated effects of the digital euro on payment firms. We estimate a loss in market capitalization of USD 127 billion for U.S. payment firms, compared to a gain of USD 23 billion for European payment firms. Paper points to a geopolitical dimension of CBDCs.
The Economics of “Buy Now, Pay Later”: A Merchant’s Perspective [Link to SSRN version]
Using a randomized experiment at an e-commerce company, we document that – when BNPL is available – sales increase by 20%. Helps to explain the surge in popularity of BNPL in e-commerce around the world.
Leverage and Risk-Taking in a Dynamic Model (with Florian Heider) [Link to SSRN version]
Shows that - contrary to the prediction of static models - risk-taking is non-monotonic in levearge in dynamic models. Predicts that firms with a medium level of leverage will avert risk.
Market-Triggered Contingent Capital with Incomplete Information (with Eva Schliephake), R&R Journal of Money, Credit and Banking [available on request]
Shows that a unique equilibrium for market-triggered contingent capital exists if a bank assets are opaque (i.e., not common knowledge)
Unintended Consequences of QE: Rea Estate Prices and Financial Stability (with Rainer Haselmann, Thomas Kick, and Sebastian Schreiber) [Link to SSRN version ]
Shows that corporate bond purchases by the ECB have contribute to Germany's real estate bubble
Do Voluntary Pledges Make Loans Greener? (with Robin Döttling, Xander Hut, and Wolf Wagner) [Link to SSRN version ]
Exploit a tightening of the Equator Principles (EP) - a pledge in the area of project financing - did not have any effect on greenness of lending.