Paper title: “Innovation in Decentralized Markets” with J.H. Yoon Abstract: This paper examines security design in imperfectly competitive markets in which assets clear separately rather than jointly. Derivatives are generally nonredundant even with zero asset supply. We characterize the scope for introducing nonredundant derivatives and examine the welfare effects of new assets. We compare welfare […]

Paper title: Informed Traders and Dealers in the FX Forward Market Abstract: There is strong heterogeneity in the permanent price impact of traders. Moreover, a trader’s permanent price impact is persistent. A trade’s ex-post permanent price impact is partially priced in dealers’ markups, even when controlling for dealer-client fixed effects. This suggests that dealers are […]

“Regulatory Interventions in Consumer Financial Markets: The Case of Credit Cards,” joint with Alessandro Gavazza Abstract: We build a framework to understand the effects of regulatory interventions in credit markets, such as caps on interest rates and higher compliance costs for lenders. We focus on the credit card market, in which we observe U.S. consumers […]

Paper Title: “Job Referrals and Labor market Outcomes Across Occupations” with David Rivers and Giorgio Topa Abstract: Though a significant fraction of workers and firms report using a referral somewhere in the hiring process, it remains unclear exactly what role referrals play (if any) in the hiring process. We exploit a novel data set to shed […]

Paper: Product Design, Competition and Prices with Declining Search Frictions Abstract: As search frictions becomes smaller in a product market, buyers are able to locate more and more sellers. Sellers respond by designing varieties of the product that are more and more specialized. I find necessary and sufficient conditions under which the increase in specialization […]

Paper: TBA

Paper: “On the Limits of onetary Economics: On Money as a Latent Medium of Exchange” (joint with Shengxing Zhang) Abstract: We formulate a generalization of the traditional medium-of-exchange function of money in contexts where there is imperfect competition in the intermediation of credit, settlement, or payment services used to conduct transactions. We find that the […]

Paper: “Inventory, Market Making, and Liquidity: Theory and Application to the Corporate Bond Market” (with Mahyar Kargar and Ben Lester) Abstract: We develop a search-theoretic model of over-the-counter markets in which customers trade through dealers who face an asset-in-advance constraint; that is, when a customer and a dealer meet, we assume that dealers can only […]