IWH Research Seminar

Virtual Lecture: The Welfare Impact of Market Power: The OPEC Cartel

IWH Research Seminar

Interest Rates, Market Power, and Financial Stability

This paper analyzes the effects of policy rates on financial intermediaries' risk-taking decisions. We consider an economy where (i) intermediaries have market power in granting loans, (ii) intermediaries monitor borrowers which lowers their probability of default, and (iii) monitoring is not observable which creates a moral hazard problem.

IWH Research Seminar

Supply Chain Shortages, Large Firms' Market Power, and Inflation

We suggest an equilibrium mechanism for the widely debated argument that “greedflation” has fostered widespread price hikes.

IWH Research Seminar

Integrated Intermediation and Fintech Market Power

We document that in the US residential mortgage market, the share of integrated intermediaries acting as both originator and servicer has declined dramatically. Exploiting a regulatory change, we show that borrowers with integrated servicers are more likely to refinance, and conditional on refinance, are more likely to be recaptured by their own servicer.

IWH Research Seminar

Quantifying Market Power and Business Dynamism in the Macroeconomy

We propose a general equilibrium model with oligopolistic output markets where two channels can cause a change in market power: (i) technology, via changes to productivity shocks and the cost of entry, (ii) market structure, via changes to the number of potential competitors.

IWH Research Seminar

Virtual Lecture: Deposits Market Power, Funding Stability, and Long-Term Credit

This paper shows that by reducing the cyclicality of deposit costs and internal funds (profits), deposit market power reduces banks’ funding risk and provides the flexibility to originate long-term loans.