The mortgage market was the starting point for several of the post-Lehman crises: the subprime crisis, the Irish crisis, the Spanish crisis, and many more. It is a market typified by massive information asymmetries, and it has been argued that a market based on highly asymmetric information contributed to the buildup of bad mortgage debt during the first half of the last decade.
The impact of asymmetric information about collateral values in mortgage lending
Johannes Stroebel, 13 December 2012
How can Bill and Melinda Gates increase other people's donations to fund public goods?
Dean Karlan, John List, 2 April 2012
Vox readers can download CEPR Discussion Paper 8922 for free here.
Rent capture through financial innovation
Bruno Biais, Jean-Charles Rochet, Paul Woolley, 25 March 2010
Financial institutions can create frictions. Until recently, economic theory had paid relatively little attention to this possibility. For example, asset pricing theory often assumes that prices are set directly by the "representative household", treating the finance sector as an efficient pass-through.
Information and illegal market mechanisms
Trevon D. Logan, Manisha Shah, 25 April 2009
Economists have coalesced around the view that institutional design can help overcome problems of asymmetric information.
The economics of labour market intermediation
David Autor, 30 October 2008
The labour market depicted by undergraduate textbooks (e.g. Mankiw 2006) is a pure spot market with complete information and atomistic price-taking. Labour economists have long understood that this model is highly incomplete.
Bagehot, central banking, and the financial crisis
Xavier Vives, 31 March 2008
The present financial crisis poses two main questions: whether it is similar to past crises and how central banks should intervene to preserve the stability of the system.
- Fiscal consolidation: At what speed?Blanchard, Leigh
- Public debt and economic growth, one more timePanizza, Presbitero
- Escaping liquidity traps: Lessons from the UK’s 1930s escapeCrafts
- The lessons of the North Atlantic crisis for economic theory and policyStiglitz
- Rethinking macroeconomic policyBlanchard
- A tale of two depressions: What do the new data tell us? February 2010 updateEichengreen, O’Rourke
- Educated in America: College graduates and high school dropoutsHeckman, LaFontaine
- Eurozone breakup would trigger the mother of all financial crisesEichengreen
- Debt, deleveraging, and the liquidity trap: A new modelKrugman
- Panic-driven austerity in the Eurozone and its implicationsDe Grauwe, Ji
Reichlin, Baldwin, 14 April 2013
Reichlin, Turner, Woodford
CEPR Policy Research
- The "Greatest" Carry Trade Ever? Understanding Eurozone Bank RisksAcharya, Steffen
- Political Credit Cycles: The Case of the Euro ZoneFernández-Villaverde, Garicano, Santos
- Winning by Losing: Incentive Incompatibility in Multiple QualifiersDagaev, Sonin
- Income and schoolingBrückner, Gradstein
- Monetary Policy and Rational Asset Price BubblesGalí