with Gary Gorton
If society progresses in the treatment of minority groups, can corporate cultures do the same? A model of how corporate cultures are determined and whether competition can push regressive ones out of the market.
Bank Net Worth and Frustrated Monetary Policy
Accepted, Journal of Financial Economics
A model in which monetary transmission to bank loan rates depends on bank net worth. When banks are flush with equity, transmission is wide open; when banks have little equity, transmission closes.
Dynamic model of collateral constraints with multiple equilibria. This means asset prices can be self-fulfilling. Price crashes, booms, and leverage cycles transpire purely from investor expectations.
A model of portfolio choice with a punitive government guarantee. Risk-taking actually declines with net worth, unless the fund's failure is imminent, in which case risk increases dramatically.