The paper analyzes the welfare implications of mandatory disclosure of losses at financial institutions when it is common knowledge that some banks have incurred losses but not which ones. We develop a model that features "contagion," meaning that banks not hit by shocks may still suffer losses...

In reality, many other markets are characterized by a small amount of search frictions, yet time variation in gross flows and real economic activity are less pronounced than in the labor and housing markets. This paper asks "why?" Preliminary evidence suggests that heterogeneity amongst workers...