3

How much of the equity premium can systemic bank runs explain? We treat runs as rare disasters whose probability and severity we …

Bank runs are a central concern for financial stability, yet empirical evidence on their incidence and macroeconomic aftermath remains …

This paper studies the effects of idiosyncratic bank credit supply shocks on bank-level and aggregate credit dynamics and non-financial …

We investigate the transmission of monetary policy to investment using Norwegian administrative data. We have two main findings. First, financially constrained firms are more responsive to monetary policy, but the effect is modest; suggesting that firm heterogeneity plays a minor role in monetary transmission. Second, we disentangle the investment channel of monetary policy into direct effects from interest rate changes and indirect general equilibrium effects. We find that the investment channel of monetary policy is due almost exclusively to direct effects. The two results imply that a representative firm framework with investment adjustment frictions in most cases provides a sufficiently detailed description of the investment channel of monetary policy.

We study the incidence and macroeconomic consequences of wholesale funding crises using a novel narrative chronology and newly …

I examine how financial constraints shape the transmission of aggregate external equity financing shocks to firms’ equity …