We disaggregate the full circular flow of money (consumption, income, and output) between small subgroups of consumers and producers. The disaggregated data identify policies with greater bang for the buck.
Website on Disaggregated Economic Accounts  |  Applied by Danish Central Bank  BFI Visualization

Cross-sectional variation in firms' perceived cost of capital systematically deviates from expected returns, challenging traditional macro-finance models.
Website on Cost of Capital and Discount Rates

Nominal discount rates are sticky, a new source of monetary non-neutrality. Investment rises with expected inflation.
Online Supplement  |  BFI Brief

Green firms and divisions have used a lower cost of capital since 2016, incentivizing green investments.
Website on Cost of Capital and Discount Rates  |  2024 Moskowitz Prize  Kellogg Brief  BFI Brief

High government purchases from firms can decrease employment and output by weakening firms' incentives to invest and compete.

June 2025
New data on firms' discount rates (i.e., required returns to investment).  The cost of capital affects discount rates with long lags. Time-varying discount rate wedges account for low US investment in recent decades.
Website on Cost of Capital and Discount Rates  |  Barron's  Forbes  FT  Hobart  Matt Levine  VoxEU  BFI Brief

June 2024
Firms transmit crises globally through internal capital markets in a "Darwinist" manner, but are "Socialist" with respect to domestic affiliates.
BFI Brief  Booth Review  

April 2023
I describe how researchers can estimate spillovers that propagate economic shocks and how to overcome mechanical biases.
BFI Brief  Summary Slides  Editable Slide Files

July 2021
Increases in bank size can harm borrowers and real growth. Bank managers may 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

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

June 2019
Idiosyncratic shocks to house prices affect borrowing of households who face tight borrowing constraints.
Booth Review  VoxEU  |  Online Appendix

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