Ben Ranish, Andrea Stella, and Jeffery ZhangSince 2010, the total number of commercial bank branches in the United States has fallen by about 20%. Do branch closures meaningfully affect economic activity? We investigate the impact of branch closures on small businesses, whose credit access may be facilitated through local relationships with bankers.
Rodney Garratt, David Murphy, Travis Nesmith, and Xiaopeng WuCentral counterparties' ability to hold successful default auctions is critically important to financial stability. However, due to the unique features of these auctions, standard auction theory results do not apply.
Eirik Eylands Brandsaas and Jens Kvaerner
Daniel RingoDespite the widespread use of fixed-rate mortgages in the United States, I show that monetary policy is effectively passed through to aggregate outstanding mortgage debt service. Using credit bureau, lender, and servicer data on mortgage payments and originations and exogenous monetary policy shocks, I estimate a mortgage rate semi-elasticity of payments over 10.
Sarena Goodman, Gina Li, Kevin Moore, and Alice Henriques VolzThe COVID-19 pandemic caused severe disruptions to the U.S. labor market and economic activity.
Charles M. Kahn, Ahyan Panjwani, and Joao A.C. SantosIn this paper, we introduce a model to study the interaction between insurance and banking. We build on the Federal Crop Insurance Act of 1980, which significantly expanded and restructured the decades-old federal crop insurance program and adverse weather shocks – over-exposure of crops to heat and acute weather events – to investigate some insights from our model.
Celso Brunetti, Matthew Carl, Jacob Gerszten, Chiara Scotti, and Chaehee ShinDoes interconnectedness improve market quality? Yes. We develop an alternative network structure, the assets network: assets are connected if they are held by the same investors. We use several large datasets to build the assets network for the corporate bond market.
Elizabeth Klee, Adair Morse, and Chaehee ShinFinancing cost differentials tilt the calculus for households toward electric vehicles (EVs). Using 85 million observations on U.S. auto loans, we study households’ credit risk by engine type, seek to uncover the sources and ask if credit risk differentials are being priced.
Robert Adams, Lisa Chen, and Michael ChernousovThis paper discusses the findings from the 2020 Survey of Finance Companies.
Hiroatsu TanakaI study the dynamics of default-free bond yields and term premia using a novel equilibrium term structure model with a New-Keynesian core and imperfect information about productivity. Imperfect information can justify a shock to signals about productivity that does not lead to actual changes in productivity, which can be interpreted as a demand shock.
