Survey-based excess stock return forecasts are procyclical, less volatile, and more persistent than countercyclical statistical forecasts. These patterns challenge rational representative-agent models. We show that they arise naturally in fully rational heterogeneous-belief models with speculative trade. Prices reflect the market...

Standard demand elasticity estimation treats investors’ demand slopes as stable objects that can be traced out by exogenous residual supply shifts. We show this identification strategy fails in dynamic settings: supply shocks cause demand curves to tilt and shift through...

In opaque markets plagued by asymmetric information, firms borrow from many lenders at once and individual contracts are not observable to other lenders. We identify a novel information externality in a model based on such a setting. To avoid adverse...

We model stakeholder-driven institutional divestiture that promotes harmful-asset stranding through both an economic exposure channel and financial prices. We introduce two novel mechanisms. First, institutional divestiture weakens stakeholders' asset exposures, improving political conditions for stranding. Second, institutional divestiture credibly communicates...

We document that all‑cash M\&A deals are substantially more likely to be withdrawn than non‑all‑cash deals (mixed-pay or all‑stock) and that withdrawal decisions are more sensitive to announcement‑period acquirer returns when financing is all‑cash. Motivated by these stylized facts, we...

The increasingly ubiquitous digital (social/self) media and influencer economy reshape how people allocate time and consumption, which, in turn, alter individual educational/career decisions, relative returns across occupations, and resource allocation in the society. Educational pursuits exhibit stage-switch externality, intensifying short-run...