Working it out: Randomized modification and entrepreneurial effort in a collateralized debt market Abstract We enrich a standard debt overhang model with liquidity constraints to guide the design and interpretation of a collateralized debt modification experiment on a publicly traded lender’s delinquent vehicle loans to minibus entrepreneurs. Liquidity constraints add […]

 What Treasury Auctions Reveal About Investor Demand Abstract We measure the elasticity of demand for Treasuries at auction directly from bidding data. From 1992 to 2010, demand for Treasuries was surprisingly elastic: a 1% increase in the supply of Treasuries relative to the amount outstanding corresponded to a 2 basis […]