How effectively does a decentralized marketplace aggregate information that is dispersed throughout the economy? We study this question in a dynamic setting where sellers have private information that is correlated with ...

This article develops a theory of the balance sheet channel that places a central emphasis on the liquidity of secondary markets for macro-contingent claims. We show that the presence of dispersed information and imperfect ...

We develop a new theory of information production during credit booms. Entrepreneurs need credit to undertake investment projects, some of which enable them to divert resources. Lenders can protect themselves from such ...

This thesis explores how personal experiences influence individuals’ beliefs about the macroeconomy and their economic decisions. Chapter 1 uses US household survey data to show that personally experiencing a rejection in ...

This thesis addresses important macro-financial questions and deliberates on policies in response to market inefficiencies. The first chapter explores the impact of debt renegotiations in credit markets in the presence of ...

This dissertation consists of three chapters related to questions in macroeconomics and information frictions. In the first chapter, I relax the complete information assumption in the standard New Keynesian framework to ...

We develop a rational theory of liquidity sentiments in which the market outcome in any given period depends on agents' expectations about market conditions in future periods. Our theory is based on the interaction between ...

What is the role of monetary policy in a bubbly world? To address this question, we study an economy in which financial frictions limit the supply of assets. The ensuing scarcity generates a demand for â unbackedâ assets, ...

We study the problem of a seller (e.g. a bank) who is privately informed about the quality of her asset and needs to raise funds from uninformed buyers (e.g. investors) by issuing securities backed by her asset cash ows. ...