A Macro-Finance Model of Capital Reallocation and Misallocation
Financial constraints reshape intermediaries’ portfolio allocation and risk pricing, altering investment across sectors and the subsequent evolution of capital composition.
Heterogeneous Investors
A Macro-Finance Model of Capital Reallocation and Misallocation
Financial constraints reshape intermediaries’ portfolio allocation and risk pricing, altering investment across sectors and the subsequent evolution of capital composition.
Macroprudential Policy, Balance Sheets, and Tail Risk
Investigating how macroprudential policies, in particular, VaR-type constraints affect aggregate investment, growth and tail risk, via a macro-finance model with heterogeneous investors.