Working Papers

Are people adequately informed about their vulnerability to future climate-related risks, and does their willingness to adapt depend on this knowledge?

This paper evaluates the welfare effects of unemployment insurance in general equilibrium using a life-cycle model.

New Jersey voters approved legalized gambling for Atlantic City in a 1976 referendum. The state explicitly leveraged the city's regional monopoly on casinos east of the Mississippi River as an economic development strategy to revive the blighted seaside resort town.

We analyze the relationship between climate-related disasters and sovereign debt crises using a model with capital accumulation, sovereign default, and disaster risk.

How do credit default swaps (CDS) affect sovereign debt markets? The answer depends crucially on trading frictions, risk-sharing, arbitrage violations, and spillovers from secondary to primary markets. We propose a sovereign default model where investors trade bonds and CDS over the counter via directed search.

In this paper, we develop a methodology that delivers an encompassing approach to computing dynamic responses of macroeconomic variables to shocks.

We construct a novel signal of bank expectations utilizing confidential data and a regulatory constraint imposed on bank internal capital markets during the 2008 crisis that made internal equity injections to commercial bank subsidiaries difficult to reverse.

Married men work substantially more hours than men who have never been married, even after controlling for observables. This Working Paper delves into possible explanations for these results.

We theoretically and empirically investigate how climate risks affect collateralized debt markets. Our results highlight the importance of heterogeneous beliefs in understanding the effects of climate change on the financial system.