Research

Publications

“Tranching, CDS and Asset Prices: How Financial Innovation can Cause Bubbles and Crashes.”

Joint with John Geanakoplos.
Forthcoming AEJ: Macroeconomics.
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“Why Does Bad News Increase Volatility and Decrease Leverage?”

Joint with John Geanakoplos.
Forthcoming Journal of Economic Theory. Abstract view
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 “Persistent Gaps and Default Traps”

Joint with Luis Catão and Sandeep Kapur.
Journal of Development Economics . 2009 89, 271–284.
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“Leverage Cycles and The Anxious Economy.”

Joint with John Geanakoplos
Lead article American Economic Review 2008, 98:4, 1211-1244.
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“Collateral Restrictions and Liquidity Under Supply: A Simple Model”.

Joint with John Geanakoplos.
Economic Theory 2008 35:441-467.
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“Latin America’s Access to International Capital Markets: Good behavior or Global Liquidity?”

Joint with Graciela Kaminsky.
In Kevin Cowan, Sebastian Edwards, and Rodrigo Valdes (eds) Current Account and External Financing, Central Bank of Chile, 2007.
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“Two New Proofs of Afriat’s Theorem”.

Joint with Herbert Scarf and Michael Todd.
Economic Theory Vol. 24, 1. 211-219.
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Book Chapters

“Default Traps”.

Joint with Luis Catão and Sandeep Kapur.
Chapter in "Sovereign Debt: From Safety to Default" Edited by Robert W. Kolb.Wiley & Sons. Full Paper (pdf) view

Working Papers

“Endogenous Leverage: VaR and Beyond.”

Joint with John Geanakoplos.
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“Sudden Stops and Sovereign Defaults”

Joint with Luis Catão and Romain Ranciere.
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“Leverage and Asset Prices: An Experiment.”

Joint with Marco Cipriani and Daniel Houser.

Work in Progress

“Leverage: A Survey.”

Joint with John Geanakoplos.

“Default Premium.”

Joint with Luis Catão and Guido Sandleris.

“Interest Rates, Margins and Deviations from Law of One Price.”

Joint with Cecilia Chen, Marco Cipriani and Daniel Houser.