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The Quiet Hand of Regulation: Harnessing Uncertainty and Disagreement

Lorenzo Garlappi , Daniel Andrei   May 12,2025

Working Paper No.00152-00

Regulating externalities is particularly challenging in the presence of uncertainty and disagreement among economic agents. Traditional Pigouvian and Coasean approaches... Read More

Debt Maturity Choice and Aggregate Growth

Orit Milo, Jacob Sagi   Jul 10,2023

Working Paper No.00103-00

We find that a measure of aggregate corporate debt maturity choices strongly predicts real GDP growth. The new measure compares... Read More

Optimal Information and Security Design

Anton Tsoy , Nicolas Inostroza   Jul 11,2023

Working Paper No.00105-00

An asset owner designs an asset-backed security and a signal about its value. After privately observing the signal, he sells... Read More

Sustainable finance under regulation

Shiyang Huang , Alexandr Kopytov   Jul 22,2023

Working Paper No.00112-00

We build a model analyzing optimal environmental regulation in the presence of socially responsible investors. Investors care about sustainability of... Read More

Asymmetric information, security design, and the pecking (dis)order

Dirk Hackbarth, Paolo Fulghieri , Diego Garcia   Aug 02,2023

Working Paper No.00117-00

We study a security design problem under asymmetric information, in the spirit of Myers and Majluf (1984). We introduce a... 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

Private Renegotiations and Government Interventions in Debt Chains

Christian Opp Vincent Glode   Nov 02,2021

Working Paper No.00062-02

We propose a model of strategic debt renegotiation in which businesses are sequentially interconnected through their liabilities. This financing structure,... Read More

Leverage Dynamics without Commitment

Peter DeMarzo , Zhiguo He   Nov 24,2020

Working Paper No.00069-00

We characterize equilibrium leverage dynamics in a tradeoff model when the firm can continuously adjust leverage and cannot commit to... Read More

Competition for Talent under Performance Manipulation

Ivan Marinovic , Paul Povel   Jul 08,2018

Working Paper No.00041-00

We study the effects of introducing competition for CEOs, assuming that the talent of CEOs is not observable and... Read More

Published: Journal of Accounting and Economics, 2017, 64(1), 1-14