This paper uses a novel approach to analyze the weather's effect on stock returns. In contrast to previous studies, I focus on barometric pressure to analyze whether there is a weather effect because only barometric pressure is physically experienced by all decision makers, be they indoors or...

This paper studies a modern monetary economy: trade in both goods and securities relies on money provided by intermediaries. While money is valued for its liquidity, its creation requires costly leverage. Inflation, security prices and the transmission of monetary policy then depend on the...

This paper estimates a business cycle model with endogenous financial asset supply and ambiguity averse investors. Firms' shareholders choose not only production and investment, but also capital structure and payout policy subject to financial frictions. An increase in uncertainty about profits...