This article reviews the dramatic growth of nonbank mortgage lending after the Global
Financial Crisis, especially to borrowers with lower credit scores, and the related importance …

There is significant interest among policymakers and academics about whether or not green
credit, which is a market-oriented environmental policy tool, has achieved its intended effect …

Security design, which broadly speaking deals with the issue of designing optimal
contractual mechanisms for overcoming various frictions between agents, is the subject of …

A central result in the theory of adverse selection in asset markets is that informed sellers
can signal quality and obtain higher prices by delaying trade. This paper provides some of …

We analyze credit rating effects on firm investments in a rational bond financing game that
features a feedback loop. The credit rating agency (CRA) inflates the rating, providing a …

We explore through both an economics and regulatory lens the frictions associated with
credit rating agencies in the aftermath of the financial crisis. While ratings and other public …

Can financial innovations be offered in the presence of information frictions without
increasing credit risk? We address this question through a randomized experiment with 799 …

We study an economy with financial frictions in which a regulator designs a test that reveals
outside information about a firm's quality to investors. The firm can also disclose verifiable …

Can peer-to-peer lending platforms mitigate fraudulent behaviors? Or have lending players
been acting similar to free-riders? This paper constructs a new proxy to investigate lending …

We present a model in which informed experts intermediate the going public process by
acquiring private firms and reselling them to public investors. Because information …