This paper investigates the impact of uncertainty on firm-level capital investment and examines whether this effect depends on the degree of competition that firms face. I exploit a unique empirical setting to construct a time-varying uncertainty measure that is exogenous to economic conditions...

This paper examines how the degree of interbank competition affects real economic growth, growth patterns, and consumer welfare using a dynamical systems approach. Risk averse agents insure against idiosyncratic risk via deposit contracts that maximize bank profits. These contracts are derived...

I explores how changes in credit market competition may result in a less pronounced effect of credit conditions on the real economy, and low volatility. Using the state-level deregulation of the U.S. banking system in the 1980s as a natural experiment, I examine whether changes in credit supply...

We develop a model where banks invest in reserves and loans, and face aggregate liquidity shocks. Banks with liquidity shortage sell loans on the interbank market. Two equilibria emerge. In the no default equilibrium, all banks hold enough reserves and remain solvent. In the mixed equilibrium,...