Narek Alexanian on Outside and Inside Money Revisited and Yinan Qiu on Do international equity funds benefit from managers' foreign education backgrounds
Narek Alexanian Abstract:
Cash (outside money) or credit (inside money) can be used as a medium of exchange to settle transactions. But does their coexistence help or hamper allocative efficiency? I examine this question in a model in which credit is collateralized by cash due to limited commitment. I show that the introduction of credit is welfare improving if and only if limited commitment constraints are sufficiently loose and agents coordinate on choosing credit to mediate exchange. In this environment, credit is optimally chosen to be a nominal contract between borrowers and lenders. Hence, the model delivers a joint characterization of money as (a) store of value; (b) medium of exchange and (c) unit of account.
Yinan Qiu Abstract:
In this paper, we study whether US international equity funds perform better in their managers' education countries. We find that while funds hold 16.7% higher excess shares in the country of their current manager's education, the sub-portfolios in those education countries do not have better performances. We also use the active share measure (I-measure) to infer funds’ subjective information rankings of each equity and sort the equities into different portfolios. The highest I-measure portfolio has the highest market alpha in both education and non-education countries, and the differences in alpha across different I-measure quantiles is more pronounced in education countries.
Yinan Qiu and George Nikolakoudis
Student Research Workshop
Princeton Community
April 18, 2023 12:20 pm - 1:15 pm
Nicolas Hommel on The Origins of the Convenience Yield
Nicolas Hommel
Student Research Workshop
Princeton Community
April 11, 2023 12:20 pm - 1:15 pm
Georgios Nikolakoudis on Prices vs Quantities: A Macroeconomic Analysis
Georgios Nikolakoudis
Student Research Workshop
Princeton Community
April 4, 2023 12:20 pm - 1:15 pm
Seung Lee on A Unified Theory of the Term-Structure and Monetary Stabilization (with Marc Dordal i Carreras)
Seung Lee
Student Research Workshop
Princeton Community
March 28, 2023 12:20 pm - 1:20 pm
Joseph Abadi on Monetary Policy with Inelastic Asset Markets
I develop a New Keynesian model to study the transmission of both conventional and unconventional monetary policy through financial markets. Aggregate asset demand is inelastic due to the presence of (i) heterogeneous intermediaries whose asset demand curves are downwards-sloping, and (ii) households that face frictions in reallocating their savings across intermediaries. The central bank directly controls the short rate, whereas the price of risk is determined by the distribution of intermediaries’ wealth and the central bank’s asset holdings. Interest rate hikes reduce long-term risky asset values, redistributing wealth away from risk-tolerant intermediaries and increasing the risk premium. Central bank asset purchases can provide stimulus by reducing the risk premium, but asset prices and investment may undershoot when those purchases are unwound. Optimal policy achieves the first-best: interest rate policy closes the output gap, and balance sheet policy neutralizes the resulting fluctuations in the price of risk.
Joseph Abadi
Student Research Workshop
Princeton Community
March 21, 2023 12:15 pm - 1:15 pm
Ziang Li on The Long-term Interest Rate and Corporate Bond Credit Spreads
Ziang Li
Student Research Workshop
Princeton Community
March 7, 2023 12:15 pm - 1:15 pm
Jihong Song on Smart-Beta Institutional Ownership and Stock Return Anomalies
Jihong Song
Student Research Workshop
Princeton Community
February 28, 2023 12:15 pm - 1:15 pm
Jialiang Lin on Banks' Geographical Expansion: New Location, Same Old Neighbours and Micheal Jenuwine on Explaining the Cross-Section of Currency Choice
Jialiang Lin and Michael Jenuwine
Student Research Workshop
Princeton Community
February 21, 2023 12:15 pm - 1:15 pm
Haonan Zhou On The Transmission of Global Financial Cycle through Heterogeneous Investor Base: Evidence from Emerging Market Sovereign Borrowing
Haonan Zhou
Student Research Workshop
Princeton Community
February 14, 2023 12:15 pm - 1:15 pm
Gustavo Freire on Which (Nonlinear) Factor Models
Gustavo Freire
Student Research Workshop
Princeton Community
February 7, 2023 12:15 pm - 1:15 pm
Batchimeg Sambalaibat on Endogenous Specialization and Dealer Networks
Batchimeg Sambalaibat
Student Research Workshop
Princeton Community
January 31, 2023 12:15 pm - 1:15 pm
Moritz Lenel on Monetary Policy, Segmentation, and the Term Structure
Moritz Lenel (with Rohan Kekre & Federico Mainardi, Chicago Booth)
Student Research Workshop
Princeton Community
December 6, 2022 12:15 pm - 1:15 pm
Jiwon Lee on The Economics of Legal Uncertainty (with David Schoenherr and Jan Starmans)
Jiwon Lee
Student Research Workshop
Princeton Community
November 29, 2022 12:15 pm - 1:15 pm
Derek Wenning on The Geography of Life Insurance
Derek Wenning
Student Research Workshop
Princeton Community
November 15, 2022 12:15 pm - 1:15 pm
Ziang Li on The Liquidity Cost of Unconventional Monetary Policy
Ziang Li
Student Research Workshop
Princeton Community
November 8, 2022 12:15 pm - 1:15 pm
Yinan Qiu on More Than Just Bias-An Information Perspective on International Equity Investment Allocation Puzzle
Yinan Qiu
Student Research Workshop
Princeton Community
November 1, 2022 12:15 pm - 1:15 pm
Lintong Li on Irreversible capital, financial frictions and business cycles
Lintong Li
Student Research Workshop
Princeton Community
October 26, 2022 12:15 pm - 1:15 pm
Yucheng Yang on Redistributive Inflation and Optimal Monetary Policy
Yucheng Yang
Student Research Workshop
Princeton Community
October 11, 2022 12:15 pm - 1:15 pm
Nicolas Hommel on Currency Choice in Multiple Markets