Excessive concentration of aggregate risk can lead to financial fragility and balance sheet recessions, and may create the need for financial regulation. This paper studies the optimal financial regulation scheme, with a focus on the optimal allocation of aggregate risk. I use a standard growth...

Matching efficiency is the productivity of the process for matching would-be workers to available jobs. Measurement of match efficiency follows the same principles as measuring a Hicks-neutral index of productivity of production. We develop a framework for measuring matching productivity when...