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Publications | Eduardo Dávila


Pecuniary Externalities in Economies with Financial Frictions, with Anton Korinek.
The Review of Economic Studies, Volume 85, Issue 1, 1 January 2018, Pages 352–395. Link, BibTeX
This paper was previously circulated as “Fire-Sale Externalities”. It subsumes my earlier working paper “Dissecting Fire Sales Externalities”.

House Price Beliefs and Mortgage Leverage Choice, with Michael Bailey, Theresa Kuchler, and Johannes Stroebel. The Review of Economic Studies, Volume 86, Issue 6, November 2019, Pages 2403–2452. Link, BibTeX.

Using Elasticities to Derive Optimal Bankruptcy Exemptions. The Review of Economic Studies, Volume 87, Issue 2, March 2020, Pages 870–913. Link, BibTeX.

Does Size Matter? Bailouts with Large and Small Banks, with Ansgar Walther. Journal of Financial Economics, Volume 136, Issue 1, April 2020, Pages 1–22. Link, BibTeX.

Trading Costs and Informational Efficiency, with Cecilia Parlatore. The Journal of Finance, Volume 76, Issue 3, June 2021, Pages 1471-1539. Link, BibTeX

Under Revision

Optimal Deposit Insurance, with Itay Goldstein, April 2021

Volatility and Informativeness, with Cecilia Parlatore, January 2021. Code and data are available here.

Optimal Financial Transaction Taxes, September 2020

Optimal Corporate Taxation under Financial Frictions, with Ben Hébert, June 2020

Working Papers

Corrective Financial Regulation with Imperfect Instruments, with Ansgar Walther, July 2021

The Value of Arbitrage, with Daniel Graves and Cecilia Parlatore, July 2021

Prudential Policy with Distorted Beliefs, with Ansgar Walther, May 2021

Identifying Price Informativeness, with Cecilia Parlatore, February 2021. Code and data are available here.

Incompleteness Shocks, with Thomas Philippon, December 2017 (substantially revised draft coming soon)

Optimal Joint Bond Design, with Charles-Henri Weymuller, September 2017 (substantially revised draft coming soon)

Inactive Working Papers

Myopic Portfolio Choice with Higher Cumulants​