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Economic Growth through Diversity in Beliefs

Christian Heyerdahl-Larsen,Howard Kung, Philipp Illeditsch   Aug 20,2023

Working Paper No.00126-00

We study a macro-finance model with entrepreneurs who have diverse views about the likelihood that their ideas will lead to... Read More

The Tokenomics of Staking

Zhiheng He,Ke Tang, Lin William Cong (叢林)   Dec 30,2023

Working Paper No.00134-00

Blockchain-based platforms and decentralized finance prominently features ``staking'': Besides offering a convenience yield for transactions as digital media of exchange,... Read More

A Theory of Liquidity Spillover Between Bond and CDS Markets

Batchimeg Sambalaibat   Jul 07,2021

Working Paper No.00072-00

I build a search model of bond and credit default swap (CDS) markets with endogenous investor participation and show that... Read More

Demand Disagreement

Christian Heyerdahl-Larsen, Philipp Illeditsch   Dec 13,2019

Working Paper No.00058-00

We develop an overlapping generations model with disagreement about the cross-sectional distribution of investors’ preferences and beliefs. This disagreement implies... Read More

Pricing and Liquidity in Decentralized Asset Markets

Semih Uslu   Mar 27,2019

Working Paper No.00050-00

I develop a search-and-bargaining model of endogenous intermediation in over-the-counter markets. Unlike the existing work, my model allows for rich... Read More

Published: Econometrica, 2019, 87(6), 2079-2140

Learning in Crowded Markets

Peter Kondor , Adam Zawadowski   Mar 12,2018

Working Paper No.00031-00

We study a capital reallocation problem in which  investors can enter into a new market where they compete with each other... Read More