The US business sector has under-invested relative to Tobin's Q since the early 2000's. We
argue that declining competition is partly responsible for this phenomenon. We use a …

We summarize and extend the new literature on the term structure of equity. Short-term
equity claims, or dividend strips, have higher average returns and Sharpe ratios than the …

The term structure of equity returns is downward-sloping: stocks with high cash flow duration
earn 1.10% per month lower returns than short-duration stocks in the cross-section. I create …

Why do stocks rise and fall? From the beginning of 1989 to the end of 2017, $34 trillion of
real equity wealth (2017: Q4 dollars) was created by the US corporate sector. We estimate …

In this paper, I examine asset pricing in a multisector model with sectors connected through
an input‐output network. Changes in the network are sources of systematic risk reflected in …

Elevated levels of government debt raise concerns about their effects on long-term growth
prospects. Using the cross-section of US stock returns, we show that (i) high-R&D firms are …

We build an asset-pricing model with dynamic strategic competition to explain the strong
joint fluctuations in aggregate discount rates, competition intensity, profitability, and asset …

Firms tend to compete more aggressively in financial distress; this intensified competition, in
turn, reduces profit margins, pushing themselves further into distress and adversely affecting …

This paper proposes a novel quantitative framework with endogenous strategic competition
in heterogeneous concentrated industries. Oligopolies compete strategically for profit …

We develop a continuous-time industry equilibrium model of monopolistic competition to
understand how product markups are determined in the presence of external financing costs …