Ariadna Dumitrescu and Javier Gil-Bazo explore whether familiarity bias among investors may help shape competition among funds, persistence of fund performance, and fees charged.
Yael Hochberg, Carlos Serrano, and Rosemarie Ziedonis estimate the effect of patent trading activity on the rate of startup lending and the role of venture capital in accessing lending markets.
How does bank size relate to the quality of loans? New work by Hugo Rodríguez Mendizábal presents evidence of a large and opposite relationship in loan quality between large and small banks in the U.S.
Xavier Freixas and Kebin Ma reexamine the classical issue of the possible trade-offs between banking competition and financial stability by highlighting different types of risk and the role of leverage. By means of a simple model, they show that competition can affect portfolio risk, insolvency risk, liquidity risk, and systemic risk in different ways.