Wharton Finance Faculty Research Fund Tradeoffs Ľubo š Pastor, Robert F. Stambaugh and Lucian A. Taylor Forthcoming in the Journal of Financial Economics Mutual funds manage tens of trillions of dollars, playing a major role in allocating capital in the economy. What drives these funds’ portfolio choices? Pastor, Stambaugh &…Read More
Research
The Effectiveness of Life-Preserving Investments in Times of COVID-19
Wharton Finance Faculty Research The Effectiveness of Life-Preserving Investments in Times of COVID-19 Jules H. van Binsbergen, Christian C. Opp Wharton working paper This paper examines investments in mitigation efforts for two diseases, COVID-19 and influenza. There are always trade-offs involved when investing limited resources to combat life hazards. Generally…Read More
Relaxing Household Liquidity Constraints through Social Security
Wharton Finance Faculty Research Relaxing Household Liquidity Constraints through Social Security Sylvain Catherine, Max Miller, Natasha Sarin Wharton working paper Most U.S. households do not have enough liquid savings to deal with an unexpected emergency, let alone the large-scale turmoil created by COVID-19. This paper analyzes the idea of allowing…Read More
Can the COVID Bailouts Save the Economy?
Wharton Finance Faculty Research Can the COVID Bailouts Save the Economy Vadim Elenev, Tim Landvoigt, Stijn Van Nieuwerburgh Wharton working paper This paper studies the effectiveness of policy interventions in the corporate debt market prompted by the COVID-19 crisis. The authors use a macroeconomic model mirroring actual programs that U.S.…Read More
Mutual Fund Flows and Fluctuations in Credit and Business Cycles
Wharton Finance Faculty Research Mutual Fund Flows and Fluctuations in Credit and Business Cycles Azi Ben-Rephael, Jaewon Choi and Itay Goldstein Forthcoming in the Journal of Financial Economics Downturns in real economic activity tend to be preceded by credit-market booms. In response, multiple measures have been proposed as early warning…Read More
Real Anomalies
Wharton Finance Faculty Research Real Anomalies Christian C. Opp and Jules van Binsbergen Published in the Journal of Finance Firm managers take cues from how the market values their company's stock. Therefore, stock market mispricing, particularly when persistent, can lead overvalued (undervalued) firms to overinvest (underinvest). Opp & Binsbergen (2019)…Read More