Coinsurance has differentiated effects that likely interact with financial constraints. We measure coinsurance of multi-segment firms using Granger causality between CDS spread-implied default risks of single-segment firms. Higher coinsurance results on average in lower cost of debt, higher...

Current decision-making models assume that an individual's attitude towards risk does not vary across different sources. A decision maker's processing of known probabilities and the resulting degree of probability weighting should therefore be unique. This paper provides evidence that challenges...

This paper studies how organizational downsizing in a bank affects loan officer specialization and the credit default risk of small and medium-sized enterprises. We exploit a wave of early loan officer retirements as a quasi-natural experiment, in which the resulting borrower reallocations...

This paper shows that improving the calibration of individuals’ self-perceived competence increases the accuracy of competence-weighted, statistical aggregates to levels that match or even beat those of prediction markets. We conduct an experiment in which participants estimate quantities and...