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Central Bank Digital Currency and Financial Stability

Peter Hoffmann,Agnese Leonello,Davide Porcellacchia, Toni Ahnert   Dec 20,2023

Working Paper No.00100-03

What is the effect of Central Bank Digital Currency (CBDC) on financial stability? We answer this question by studying a model... Read More

Time Trumps Quantity in the Market for Lemons

Piero Gottardi,Humberto Moreira, William Fuchs   Nov 15,2022

Working Paper No.00085-00

We consider a dynamic adverse selection model where privately informed sellers of divisible assets can choose how much of their... Read More

Bayesian Doublespeak

Alice Hsiaw, Ing-Haw Cheng   Nov 15,2022

Working Paper No.00086-00

Why does misinformation persist, and how does it distort the long-run beliefs and actions of rational agents? Suppose receivers see... Read More

Providing Incentives with Private Contracts

Qing Liu, Lucy White Andrea Buffa   Nov 18,2022

Working Paper No.00073-01

Agents working together to produce a joint output care about each other’s incentives. Because real world contracts are typically private... Read More

Model Secrecy and Stress Tests (JF forthcoming)

Basil Williams Yaron Leitner   Nov 17,2021

Working Paper No.00061-01

Should regulators reveal the models they use to stress test banks? In our setting, revealing leads to gaming, but secrecy... Read More

Published: Journal of Finance, 2023, 78(2), 1055-1095

Monitor Reputation and Transparency

Ivan Marinovic , Martin Szydlowski   Sep 22,2020

Working Paper No.00045-01

We study the disclosure policy of a regulator overseeing a monitor with reputation concerns, such as a bank or... Read More

Risk seekers: trade, noise, and the rationalizing effect of market impact on convex preferences

Efstathios Avdis   Oct 08,2020

Working Paper No.00051-02

Long-held intuition dictates that information-based trade is impossible without exogenous noise. Risk seekers can resolve this conundrum. Even though such... Read More

Open Banking: Credit Market Competition When Borrowers Own the Data

Jing Huang,Jidong Zhou, Zhiguo He   Nov 24,2020

Working Paper No.00068-00

Open banking facilitates data sharing consented by customers who generate the data, with a regulatory goal of promoting competition between... Read More

The Insurance is the Lemon: Failing to Index Contracts

Benjamin Hebert , Barney Hartman-Glaser   Jan 08,2019

Working Paper No.00049-00

We model the widespread failure of contracts to share risk using available indices. A borrower and lender can share risk... Read More

Aggregation and Design of Information in Markets with Adverse Selection

Brett Green , William Fuchs , Vladimir Asriyan   Nov 05,2019

Working Paper No.00032-01

How effectively does a decentralized marketplace aggregate information that is dispersed throughout the economy? We study this question in a... Read More

Published: Journal of Economic Theory, 2021, (), -