Over two decades ago, Mehra and Prescott (1985) challenged the finance profession with a
poser: the historical US equity premium is an order of magnitude greater than can be …

A quantitative investigation of financial intermediation in the United States over the past 130
years yields the following results:(i) the finance industry's share of gross domestic product …

We extend a standard New Keynesian model to allow an analysis of “unconventional”
dimensions of policy alongside traditional interest-rate policy. We find that quantitative …

This survey discusses recent contributions to the quantitative literature on unsecured
consumer debt and default, and some ongoing challenges for the literature. Key topics …

We consider the desirability of modifying a standard Taylor rule for interest rate policy to
incorporate adjustments for measures of financial conditions. We consider the …

The basic (representative-household) New Keynesian model of the monetary transmission
mechanism is extended to allow for a spread between the interest rate available to savers …

How important is financial development for economic development? A costly state
verification model of financial intermediation is presented to address this question. The …

We extend a standard New Keynesian model both to incorporate heterogeneity in spending
opportunities along with two sources of (potentially time-varying) credit spreads and to allow …

This paper proposes a quantitative evaluation of the financial sector from 1950 to 2007 in
Germany, France, the United Kingdom, and Europe more broadly. Three main facts are …

Does automatic enrollment into a retirement plan increase financial distress due to
increased borrowing outside the plan? We study a natural experiment created when the US …