Financial Frictions and Systemic Risk - Research Projects

2024 Projects

A call for research proposals was broadly disseminated in early 2024. It resulted in another strong set of submissions, from which the project leaders, with input from researchers at the Office of Financial Research, selected ten projects for funding. The selection process focused on the intrinsic quality and interest of the projects as well as the relevance to topical issues in the analysis of systemic risk. The funded projects are listed below.

Anatomy of Option Retail Trading 
Xing Huang, Washington University in St. Louis 
Philippe Jorion, University of California at Irvine 
Christopher Schwarz, University of California at Irvine

Asset Purchase Rules: How QE Transformed the Bond Market 
Valentin Haddad, University of California, Los Angeles and NBER 
Alan Moreira, University of Rochester and NBER 
Tyler Muir, University of California, Los Angeles and NBER 
  
Buybacks 
Darrell Duffie, Stanford University and NBER 
  
Household Preferences, Security Design, and Volatility Prices 
Laurent E. Calvet, SKEMA Business School 
Claire Celerier, University of Toronto 
Gordon Y. Liao, Circle 
Boris Vallee, Harvard University 
  
New Evidence on the Causes of Historical Banking Crises and the Effects of Policy Interventions 
Matthew Baron, Cornell University 
Luc Laeven, European Central Bank 
Julien Pénasse, University of Luxembourg 
  
Pension Fund Investments and Liquidity 
Joshua Rauh, Stanford University and NBER
Aleksandar Andonov, University of Amsterdam
Kristy Jansen, University of Southern California 
  
The Economics of Market-Based Deposit Insurance 
Shohini Kundu, University of California, Los Angeles 
Edward T. Kim, University of Michigan 
Amiyatosh Purnanandam, University of Michigan 
  
The Implications of Instant Payment Systems on the Banking System 
Yiming Ma, Columbia Business School 
Yao Zeng, University of Pennsylvania 
  
The Macroeconomic Implications of Corporate Debt Contracts 
Chen Lian, University of California, Berkeley and NBER 
Yueran Ma, University of Chicago Booth School of Business and NBER 
Pablo Ottonello, University of Maryland and NBER 
Diego J. Perez, New York University and NBER 
  
Too-many-to-ignore: Regional Bank CRE Risk and Externalities 
Franz J. Hinzen, Dartmouth College 
Felipe Severino, Dartmouth College  
 

2023 Projects

A call for research proposals was broadly disseminated in early 2023. It resulted in a strong set of submissions, from which the project leaders, with input from researchers at the Office of Financial Research, selected six projects for funding. The funded projects are listed below.

A Dynamic Model of Treasury Markets with Implications for Monetary Policy and Financial Stability
Quentin Vandeweyer, University of Chicago
Adrien d’Avernas, Stockholm School of Economics

Banking on Uninsured Deposits
Itamar Drechsler, University of Pennsylvania and NBER
Alexi Savov, New York University and NBER
Philipp Schnabl, New York University and NBER
Olivier Wang, New York University

How Does Investor Demand Affect CLO Creation, Firm Borrowing, and Investment?
Abhishek Bhardwaj, Tulane University
Shan Ge, New York University
Saptarshi Mukherjee, Northeastern University

Interdealer Price Dispersion
Andrea L. Eisfeldt, University of California, Los Angeles and NBER
Bernard Herskovic, University of California, Los Angeles and NBER
Shuo Liu, Tsinghua University

Treasury Demand
Kristy Jansen, University of Southern California
Wenhao Li, University of Southern California
Lukas Schmid, University of Southern California

Financial Linkages and Stability via Tax Havens
Matteo Maggiori, Stanford University and NBER 
Jesse Schreger, Columbia University and NBER