We investigate the joint effects of short-selling, floating constraints and heterogeneous beliefs on stock prices by using a unique data set of cross-listed Chinese stocks. Because domestic A-shares are subject to both short-selling and floating restrictions while foreign H-shares are not,...

In this paper we examine the effects of elastic information-processing capacity (or elastic attention) proposed in Sims (2010) on international consumption and income correlations in a tractable small open economy (SOE) model with exogenous income processes. We find that in the presence of...

Collateral is at the heart of the modern financial system and plays an essential role in business and financial cycles. Leveraging a unique loan-level data covering a major city in China, the paper is among the first to provide stylized facts on Chinese bank loan collateral structure. It shows...

Collateral is at the heart of modern financial system and plays an essential role in business and financial cycles. Leveraging detailed loan level data covering a major city in China, the paper is among the first to provide stylized facts on Chinese bank loan collateral structure. It shows that...

This paper analyzes the role of distance and financial development in equity portfolio performance, using panel data on mutual fund holdings in the U.S. stock market from 39 countries. Our paper shows that financial development, represented by financial depth, is positively correlated with...