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Open Banking under Maturity Transformation

Uploaded: Sep 24, 2025

Itay Goldstein, Chong Huang, Liyan Yang

This paper examines how the shift from closed banking to open banking --- where borrower data become accessible to more financial institutions --- affects lending competition, credit availability, and resource allocation in underbanked markets. We develop a common-value auction model...

Trading against Algorithms: Price Dynamics and Risk-sharing in a Market with Q-learners

Uploaded: Sep 16, 2025

Snehal Banerjee, Martin Szydlowski

We study pricing dynamics and risk-sharing in a market with rational investors and a Q-learning trader. The Q-learner’s trading generates a feedback loop in prices: their demand for the risky security depends on their perceived benefit from trading, which in...

Losing grip? The Quantity Theory of Money under Currency Competition

Uploaded: Aug 29, 2025

Linda Schilling

This study examines currency competition between the Dollar and Bitcoin, focusing on monetary policy. Using theory and lab experiments, we show that proportional transfers (interest on Dollar balances) operate in two regimes. Depending on inflation expectations, policy may raise Dollar...

Data versus Information Sales under Financial Constraints

Uploaded: Aug 13, 2025

Dmitry Orlov, Andrzej Skrzypacz, Pavel Zryumov

We study a dynamic problem of selling data without commitment to a budget-constrained receiver. The sender has access to a data-generating process, informative about a fundamental state, and can sell it either as granular observations (raw data) or summary statistics...

Equilibrium in a DeFi Lending Market

Uploaded: Aug 12, 2025

Thomas Rivera, Fahad Saleh, Quentin Vandeweyer

We develop a model of Decentralized Finance (DeFi) lending platforms that set interest rates as programmable functions of the utilization of available funds. These platforms are unable to incorporate off-chain information into the platform’s interest rates, leading to inefficient DeFi...

How (Not) to Identify Demand Elasticities in Dynamic Asset Markets

Uploaded: Aug 5, 2025

Jules Van Binsbergen, Benjamin David, Christian Opp

We evaluate approaches to estimating demand elasticities in dynamic asset markets, both theoretically and empirically. We establish strict, necessary conditions that the dynamics of instrumented asset price variation must satisfy for valid identification. We illustrate these insights in a general...