We show that, in the presence of correlated investment opportunities across firms, risk sharing between firm shareholders and firm managers leads to...
An important question in banking is how strict supervision affects bank lending. Supervisors forcing banks to recognize losses could choke off lending...
In this paper, we study how legal uncertainty affects economic activity. We develop a parsimonious model with different types of legal uncertainty that...
We develop a model in which brown (high-emission) and green (clean-energy) firms compete and seek financing from banks and the capital market. We use...