Viviana Luccioli, Rithika Iyengar, Ryan Panley, Flora Haberkorn, Xiaoyu Ge, Leland Crane, Nitish Sinha, and Seung Jung LeeLarge Language Models (LLMs) are highly accurate in classification tasks, however, substantial computational and financial costs hinder their large-scale deployment in dynamic environm
Jesse Bricker, Kevin B. Moore, and Alice H. VolzPrivately owned business assets are an important source of wealth for families across the world, but measurement issues are believed to hamper our understanding of these firms.
Nathan Foley-Fisher and Jeongmin (Mina) LeeDuring the COVID-19 crisis, large outflows from bond mutual funds disrupted debt markets. We show that "funds of funds"-mutual funds that invest in other mutual funds-accounted for a third of those outflows in March 2020. They rebalanced their portfolios mechanically in response to equity market losses, selling bond funds and purchasing equity funds.
Bikash Poudel, Sarah Carey, Robert Flynn, Chakrapani Narayan, Richard Payne, Eshwar Satrasala, Seaira Spooney, and James LovejoyThe capability to make offline digital payments is emerging as a vital component of the broader payments ecosystem, especially in scenarios in which internet connectivity is unavailable such as during a crisis or natural disaster. Offline digital payment services offer a secure and reliable alternative to cash. Even so, there are a limited number of viable offline payment protocols in production today.
Momo KomatsuDuring the energy crisis in 2022 some Euro Area countries introduced price caps on energy, while others did not, leading to about 30 percentage points higher energy inflation in uncapped countries. This paper investigates the trade-offs policymakers face with energy price caps in a two-country currency union model with shared energy supply. The cooperative, optimal outcome is for neither country to impose a price cap, since the cap is a costly market distortion.
Wenxin Du, Ritt Keerati, and Jesse SchregerWe document a strong decoupling between the convenience yield on the US Dollar and US Treasuries. We measure the convenience of the U.S. dollar using covered interest parity (CIP) deviations between risk-free bank rates, such as secured overnight rates since the benchmark reform. In parallel, we measure the convenience of U.S. Treasury bonds through CIP deviations between government bond yields.
François de Soyres, Simon Fuchs, Illenin O. Kondo, and Helene MaghinWe develop a framework to assess how economic shocks affect local labor markets and worker welfare, with a focus on city-level economic diversity. Using detailed worker flow data across cities, sectors, and occupations, we construct theory-consistent welfare measures. Our approach combines a dynamic discrete choice model with a dual representation that captures both direct effects and the insurance value of local economic diversity.
Jean Xiao TimmermanThis paper examines the evolution of artificial intelligence (AI) patent rates (i.e., the number of AI patents/number of firms of the same type) and concentration metrics (i.e., the Herfindahl-Hirschman Index (HHI) and Gini coefficient) among financial market participants from 2000 to 2020.
Jin-Wook Chang, Jacob Dice, Shengwu Du, Adam Flury, Sam Jerow, Seung Jung Lee, Stacey Schreft, and Craig VandreThis paper examines cyber vulnerabilities across the 100 largest US banks, non-bank financial institutions (NBFIs), and their third-party service providers.
Andres Almazan, Nathan Swem, Sheridan Titman, Gregory WeitznerWe analyze firms’ IPO decisions using detailed financial data on US private firms. We find that firms with higher external capital needs are more likely to go public. Following the IPO, firms increase their investment and debt issuance, resulting in leverage ratios close to their pre-IPO levels. Finally, newly public firms borrow from an expanded pool of lenders at improved terms, with a decrease in the within-firm dispersion in banks’ private risk assessments.
