In this paper we provide strong evidence that heightened uncertainty in the U.S. real economy or financial markets significantly raises excess returns to the currency carry trade. We posit that this works through the influence of uncertainty on global investors' risk preferences. Macro and...

Given the recent empirical evidence on peer effects in CEO compensation, this paper theoretically examines how relative wealth concerns, in which a manager's satisfaction with his own compensation depends on the compensation of other managers, affect the equilibrium contracting strategy and...

Given the recent empirical evidence on peer effects in CEO compensation, this paper theoretically examines how relative wealth concerns, in which a manager's satisfaction with his own compensation depends on the compensation of other managers, affect the equilibrium contracting strategy and...

Existing literature finds that U.S. monetary policy has powerful spillover effects on the Global Financial Cycle (GFC). We examine how important U.S. monetary policy shocks are relative to others in an estimation framework that allows for simultaneous identification of multiple shocks without...

We present a general-equilibrium theory of contracting in which managers are concerned about their social standing in a closely interacted circle of executives. Managerial effort in scrutinizing and implementing investment opportunities, which expose firm value to aggregate risk, can help them...