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Working Papers

Corporate Discount Rates
(with Niels Joachim Gormsen)
We construct a new database of firms' discount rates and cost of capital. Discount rates move with the cost of capital, but not one-to-one. These dynamics shed light on how interest rates and asset prices affect investment.

Equity Factors and Firms’ Perceived Cost of Capital
w draft coming soon (with Niels Joachim Gormsen)
Revision requested by the Review of Financial Studies
We study which equity risk factors are reflected in firms' perceived cost of capital and discount rates.

Tracing the International Transmission of a Crisis Through Multinational Firms
(with Marcus Biermann)
Revision requested by the Journal of Finance
An idiosyncratic shock to a single firm can impact growth all over the world, even if the shocked firm only operates in its home country. Internal capital markets of multinational firms transmit the shock abroad.


Estimating General Equilibrium Spillovers of Large-Scale Shocks
Review of Financial Studies, forthcoming
I describe how researchers can estimate spillovers operat
ing among groups of firms and households. I highlight sources of mechanical bias, propose actionable solutions, and illustrate the relevance of the method using applications.
BFI Brief

Discrimination, Managers, and Firm Performance: Evidence from “Aryanizations” in Nazi Germany
(with Volker Lindenthal and Fabian Waldinger)
Journal of Political Economy, September 2021, lead article
Discrimination against senior managers causes large economic losses because qualified individuals are key to firm performance.
BFI Brief Booth Review Cato Institute CentrePiece FAZ Freakonomics Harvard Business Review Manager Magazin ProMarket VoxEU | Online Appendix

Are Bigger Banks Better? Firm-Level Evidence from Germany
Journal of Political Economy, July 2021
Increases in bank size can harm borrowers and real growth, while bank managers enjoy private benefits, even when bank efficiency does not improve.
Video Summary | BFI Brief Booth Review Die Zeit | Seminar Villanova Seminar Virtual Econ History Seminar VMACS | Online Appendix

The Effect of House Prices on Household Borrowing: A New Approach
(with James Cloyne, Ethan Ilzetzki, and Henrik Kleven)
American Economic Review, June 2019
Idiosyncratic shocks to house prices affect borrowing of households who face tight borrowing constraints.
Booth Review VoxEU | Online Appendix

Disentangling the Effects of a Banking Crisis: Evidence from German Firms and Counties
American Economic Review, March 2018
The effects of bank lending cuts are exacerbated by general equilibrium effects: demand and innovation spillovers. Employment and output remain persistently depressed even after bank lending has normalized.
Presentation ESRB | BFI Brief Booth Review Die Zeit | Online Appendix