Regulating Asset Price Risk
研究了投机者在正常时期稳定市场但在恐慌时期可能引发资产价格风险加剧的机制，并证明抑制资产负债表风险的政策能减少恐慌程度和资产价格风险。
There has been a long debate about whether speculators are stabilizing or not. We consider a model where speculators have a stabilizing role in normal times, but may also provoke large risk panics. The very feature that makes arbitrageurs liquidity providers in normal times, namely their tolerance of risk, enables a large increase in asset price risk during a financial panic. We show that a policy that discourages balance sheet risk reduces the magnitude of financial panics, as well as asset price risk in both normal and panic states.