theory

Big Data in Finance

Big data in finance refers to large, diverse (structured and unstructured) and complex sets of data that can be used to provide solutions to long-standing business challenges for financial services and banking companies around the world.n.d., Corporate Finance Institute

Big data in finance and the growth of large firms

Two modern economic trends are the increase in firm size and advances in information technology. We explore the hypothesis that big data disproportionately benefits big firms. August 2018, Begenau, Farboodi & Veldkamp

Does a Central Clearing Counterparty Reduce Counterparty Risk?

We show whether central clearing of a particular class of derivatives lowers counterparty risk. For plausible cases, adding a central clearing counterparty (CCP) for a class of derivatives such as credit default swaps reduces netting efficiency, leading to an increase in average exposure to counterparty default. July 18, 2011, Darrell Duffie & Haoxiang Zhu

Is Bitcoin a Real Currency? An economic appraisal

A bona fide currency functions as a medium of exchange, a store of value, and a unit of account, but bitcoin largely fails to satisfy these criteria.April, 2014, David Yermack

Laura Veldkamp on Modeling and Measuring the Data Economy

The five largest American companies derive most of their value not from physical assets, but from intangibles ones, like data. Data and new data technologies are changing production, labor and valuation. April 2020, Veldkamp

Long Run Growth of Financial Data Technology

“Big data” financial technology raises concerns about market inefficiency. A common concern is that the technology might induce traders to extract others’ information, rather than to produce information themselves.October 2019, Farboodi & Veldkamp

Market Design with Blockchain Technology

Blockchain or, more generally, distributed ledger technology allows to create a decentralized digital ledger of transactions and to share it among a network of computers. July 26, 2017, Katya Malinova & Andreas Park

Smart Settlement

Recent regulatory and FinTech initiatives aim to streamline post-trade infrastructures. Does faster settlement benefit markets? May 1, 2018, Mariana Khapko & Marius Zoican

Some Simple Economics of the Blockchain

We build on economic theory to discuss how blockchain technology can shape innovation and competition in digital platforms. April 20, 2019, Christian Catalini & Joshua S. Gans

The Economics of Cryptocurrencies – Bitcoin and Beyond

How well can a cryptocurrency serve as a means of payment? We study the optimal design of cryptocurrencies and assess quantitatively how well such currencies can support bilateral trade. September 1, 2017, Jonathan Chiu & Thorsten V. Koeppl