The choice of instruments for mitigating economic volatility is a serious consideration for policymakers and important question in government and economics. Using a DSGE model with endogenous technology creation, we show that efficient financial markets are more effective than conventional...

We investigate what accounting information is important for explaining the credit risk for U.S. bank holding corporations (BHCs) during the recent crisis and find that several CAMELS variables are significantly associated with credit default swap (CDS) spreads. Consistent with industry...

U.S. common stocks are simultaneously traded on multiple trading centers. We study quotes and trades with millisecond timestamps during the flash crash of May 6, 2010 and document new findings about order dynamics when the fragmented market is under stress. First, relative to May 5, 2010, the...