The use of machine learning in credit allocation should allow lenders to better extend credit, but the shift from traditional to machine learning lending models may have important distributional effects for consumers. This paper analyzes the effect of machine learning on mortgage lending in the US.
In the wake of the Global Financial Crises (GFC), the GDP of most countries failed to recover and catch up with its previous trend. This paper studies the cause of the boom that preceded the crisis and ask whether it was sustainable, or even desirable in the first place.
This paper studies whether higher within-firm pay inequality is driven by managerial talent or managerial rent extraction and whether, ultimately, firms with larger pay disparities have lower valuations.
For entrepreneurs and small business owners, housing is an important source of collateral for business loans. This paper explores the implications of changes in house prices for this sort of borrowing and for firm-level outcomes.