Papers
Tech-Driven Intermediation in the Originate-to-Distribute Model
Uploaded: Jul 30, 2025
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...
An Arbitrage Foundation for Demand Effects in Asset Pricing
Uploaded: Jul 30, 2025
Demand for any of N assets can influence every other price, generating N^2 cross-impact slopes. Which interactions are determined by economic first principles and which reflect investor behavior? Using no arbitrage alone—without needing to specify a particular equilibrium—a new "Irrelevance...
Benign Granularity in Asset Markets
Uploaded: Jul 29, 2025
We develop a tractable model to study how asset concentration among a few large
investors impacts asset prices and liquidity. Consistent with existing empirical evidence:
(i) greater concentration is associated with higher volatility and returns, and (ii) large
investors’ turnover...
Losing grip? The Quantity Theory of Money under Currency Competition
Uploaded: Jul 29, 2025
This study examines currency competition between a centrally managed currency, the Dollar, and
a rigid-supply alternative, Bitcoin, focusing on the role of monetary policy. Using theoretical modeling and laboratory experiments, we show that proportional transfers, modeled as interest on Dollar...
The Quiet Hand of Regulation: Harnessing Uncertainty and Disagreement
Uploaded: Jul 29, 2025
Regulating externalities is a major challenge when economic agents face uncertainty and disagreement. Traditional Pigouvian and Coasean approaches often struggle because they require either precise knowledge of externality costs or frictionless bargaining. We propose an "uncertainty-based regulation" (UBR) mechanism that...
Network Risk and Key Players: A Structural Analysis of Interbank Liquidity
Published: Journal of Financial Economics, 2021
Using a structural model, we estimate the liquidity multiplier of an interbank network and banks’ contributions to systemic risk. To provide payment services, banks hold reserves. Their equilibrium holdings can be strategic complements or substitutes. The former arises when payment...
