Regulating externalities is a major challenge when economic agents face uncertainty and disagreement. Traditional Pigouvian and Coasean approaches...

In a dynamic model of large traders who manage inventory risk, we show that a daily market closure...

We develop a two-asset search-and-bargaining model of OTC trading to estimate frictions and welfare losses in the UK...

How should we expect firms to communicate with their shareholders in the presence of uncertainty? This paper studies...

Shocks to a bank’s ability to raise liquidity at short notice can trigger depositor panics. Why don’t banks...

We study bank capital requirements as a tool to address climate-related financial risks and evaluate whether a prudential...