We develop a conceptual framework and an empirical methodology to analyze the effect of
rising interest rates on the value of US bank assets and bank stability. We mark-to-market …

This paper develops a micro-founded general equilibrium model of payments to study the
impact of a central bank digital currency (CBDC) on intermediation of private banks. If banks …

We quantify the impact of bank market power on monetary policy transmission through
banks to borrowers. We estimate a dynamic banking model in which monetary policy affects …

How does the shadow banking system respond to changes in capital regulation of
commercial banks? We propose a quantitative general equilibrium model with regulated …

We analyze the role of retail central bank digital currency (CBDC) and reserves when banks
exert deposit market power and liquidity transformation entails externalities. Optimal …

The deposit business differs at large versus small banks. We provide a parsimonious model
and extensive empirical evidence supporting the idea that much of the variation in deposit …

We present a tractable dynamic general equilibrium model of self-fulfilling bank runs, where
banks trade capital in competitive and liquid markets but remain vulnerable to runs due to a …

Uncertainty over government policy affects important and irreversible decisions, including
firm technology adoption, entry, and exit. The real options literature has found that higher …

We show that distortion in the size distribution of banks around regulatory thresholds can be
used to identify costs of bank regulation. We build a structural model in which banks can …

To decide the number, size, and location of its plants, a firm balances the benefit of
delivering goods from multiple plants with the cost of setting up and managing these plants …