Venture capital financing typically features complex securities and staging. We develop a dynamic contracting model where an entrepreneur seeks financing from active investors (who provide costly monitoring and screening) and passive investors (who offer cheaper capital). Under multilateral moral hazard,...

We develop a dynamic household finance model showing that student loans --  non-dischargeable in the U.S. bankruptcy -- alleviate the well-documented debt overhang in labor supply decisions. Non-dischargeability mutes opportunities for households to strategically reduce labor supply at the expense...

This paper characterizes the optimal contract when the agent is endowed with aspirational utility. Our analysis reveals that effort and aspirations act as complements: the principal utilizes aspirational ``boosters'' to induce local risk-loving behavior, reducing the welfare costs of incentives...

We study machine learning models for stock return prediction in non-stationary environments
and identify a fundamental nonstationarity–complexity tradeoff: more complex models reduce
misspecification error but require longer training windows that exacerbate non-stationarity.
We address this tension with a novel tournament-based model selection procedure...

This paper develops a general equilibrium model to examine the role of information technology when intermediaries facilitate the origination and distribution of assets given information asymmetry. Information technology measures the informativeness of asset-quality signals received by intermediaries, who purchase assets...

Financial derivatives, such as futures, options, and swaps, are not contracts on exogenous states of the world, as in Arrow (1964): their payoffs depend on the endogenous market prices of certain goods. How well do markets for price risk approximate...