Publications
Monetary Policy, Bank Competition and Regional Credit Cycles: Evidence from a Quasi-Natural Experiment - with Nimrod Segev (link)
Journal of Corporate Finance, forthcoming
Federal Reserve Private Information and the Stock Market - with Aeimit Lakdawala (link)
Journal of Banking and Finance, Vol 106, pp 34-49, September 2019
Working Papers
Bank Regulation and Monetary Policy Transmission: Evidence from the U.S. States Liberalization - with Aeimit Lakdawala and Raoul Minetti (PDF)
The Deposits Channel Revisited - with Nimrod Segev (PDF)
Work in Progress
The International Spillover Effects of US Monetary Policy Uncertainty - with Aeimit Lakdawala and Timothy Moreland
Monetary Policy, Bank Competition and Regional Credit Cycles: Evidence from a Quasi-Natural Experiment - with Nimrod Segev (link)
Journal of Corporate Finance, forthcoming
Federal Reserve Private Information and the Stock Market - with Aeimit Lakdawala (link)
Journal of Banking and Finance, Vol 106, pp 34-49, September 2019
Working Papers
Bank Regulation and Monetary Policy Transmission: Evidence from the U.S. States Liberalization - with Aeimit Lakdawala and Raoul Minetti (PDF)
- Abstract: This paper studies the impact of geographic banking restrictions on monetary policy transmission. Exploiting the staggered deregulation of U.S. banking from the late 1970s to the early 1990s, we find that interstate deregulation significantly increased the responsiveness of bank lending to monetary shocks. This effect occurred primarily for small and illiquid banks, pointing to a strengthening of the bank lending channel. Changes in bank market structure and loan portfolio composition are unlikely to explain the effect of deregulation. This instead reflects a reduced propensity of small banks affiliated with complex holding companies to insulate borrowers from monetary contractions.
The Deposits Channel Revisited - with Nimrod Segev (PDF)
- Abstract: Drechsler, Savov, and Schnabl (2017) present a novel reformulation of the bank lending channel of monetary transmission based on market power in deposits markets, which they term the "deposits channel." We perform a successful narrow replication, reconcile their results with a related empirical literature, and control for an alternative theoretical mechanism. Inconsistencies with related studies can be explained by differences in market power measure, monetary policy instrument, and sample period. When controlling for an alternative mechanism, our results suggest that the "deposits channel" only partially explains the response of loan supply to monetary policy.
Work in Progress
The International Spillover Effects of US Monetary Policy Uncertainty - with Aeimit Lakdawala and Timothy Moreland
