We develop a model of bailout stigma in which accepting bailouts may signal firms' financial troubles and worsen subsequent financing conditions. Bailout stigma can lead to low or even no take-up of otherwise attractive bailout offers, the failure of immediate market revival, or a government...

We analyze the optimal strategy for a government to promote large-scale investment projects under information frictions. Specifically, we propose a model where the government collects information on profitability of each investment and discloses it to private investors a la Kamenica and...

We present a model of ESG integration where borrowers can deviate from ESG promises ex-post. Borrowers are incentivized to pursue ESG projects only when lenders can charge a high borrowing rate, which decreases the borrowers’ private benefit from pursuing financial returns. In the presence of...