Raquel Fernández and Alberto Martín explore the role of debt maturity on the frequency with which a country enters a debt crisis and on the severity of the latter.
Ariadna Dumitrescu and Javier Gil-Bazo explore whether familiarity bias among investors may help shape competition among funds, persistence of fund performance, and fees charged.
Yael Hochberg, Carlos Serrano, and Rosemarie Ziedonis estimate the effect of patent trading activity on the rate of startup lending and the role of venture capital in accessing lending markets.
How does bank size relate to the quality of loans? New work by Hugo Rodríguez Mendizábal presents evidence of a large and opposite relationship in loan quality between large and small banks in the U.S.
Xavier Freixas and Kebin Ma reexamine the classical issue of the possible trade-offs between banking competition and financial stability by highlighting different types of risk and the role of leverage. By means of a simple model, they show that competition can affect portfolio risk, insolvency risk, liquidity risk, and systemic risk in different ways.
In the economy we observe stock price booms and busts. How do these cycles come about, could there be a way of smoothing them and, in that case, should we? Klaus Adam, Johannes Beutel, and Albert Marcet show that a very simple model of stock prices can explain very well the stock price volatility found in the data assuming that investors do not understand perfectly well how prices are formed.