Work in progress
“Private Equity Investments in U.S. Banks”, with Robert DeYoung and Gokhan Torna.
Analysis of private equity fund involvement in the U.S. banking industry during and after the Great Financial Crisis. We find evidence consistent with PE investors' active role leading to increasing the risk incentives in bank CEO contracts and subsequent increases in banks' earnings growth and riskiness.
“Teaser Rates”, with Lukasz Drozd. See links below.
A series of papers on the promotional credit card market. The first paper provides a theory of promotional credit cards and basic stylized facts behind this market. The second paper (a teaser by Lukasz) will provide empirical evidence consistent with the significant negative contribution of drying up of the promotional credit market during the GFC to the Great Recession.
“How Did the U.S. Banks Financed the Paycheck Protection Program Loans?”, with Scott Schueller. Draft coming soon
Analysis of the choice banks made between deposits and Federal Reserve facilities to finance PPP loans. We show that the main borrowers from the PPPLF were less profitable and riskier banks, who were able to signifcantly shore up their health by
“Mortgage Forbearance and Repayment Behavior During the Pandemic”, with Sean An, Lily Liu, and Annie Zhang. Draft coming soon
Analysis of mortgage borrowers’ repayment behavior under the federal forbearance programs. We show that weathier borrowers were more likely to take out mortgage forbearance and in some instances were more likely to stop paying their mortgage payments.
Publications
“Endogenizing the Scope of the Stigma of Failure”, (joint with Kerstin Gerling and Heiner Schumacher), The B.E. Journal of Economic Analysis and Policy 15 (3), 2015, pp. 1455-1480.
“A Theory of Failed Bank Resolution: Technological Change and Political Economics”, (joint with Robert DeYoung and Jack Reidhill), Journal of Financial Stability 9(4), 2013, pp. 612-627.
Older working papers
“The Changing Role of Small Banks in Small-Business Lending”, with Lamont Black
Empirical evidence for the hypothesis that large banks’ competition for small-business borrowers forces U.S. community banks to specialize their small-business lending among the medium-sized businesses.
Explanation for simultaneous collapse of securitization markets and resilience of unsecured interbank markets in the U.S. in 2007-2008.
“The Creditworthiness of the Poor. A Model of the Grameen Bank”, with David Martinez-Miera
Theoretical model and empirical evidence supporting the idea that the Grameen Bank’s success is based on the premise that the poorest borrowers have the strongest incentives to repay loans.
"Bank Capital Regulation and Secondary Markets for Bank Assets”
Disclosure of banks’ risk exposures to the market destroys their incentive to share this information with their supervisors.