Marcela Valenzuela

We investigate the causal impact of financial risk on economic growth, using a panel spanning 150 years and 74 countries. Persistent low risk...

We derive the optimal underwriting method and the quantitative IPO pricing rule that this method implies in a market with informational frictions...

The Review of Financial Studies, Volume 31, Issue 7, Pages 2774–2805.

Reliable indicators of future financial crises are important for policymakers and practitioners. While most indicators consider an observation of high...

We study the effects of stock market volatility on risk-taking and financial crises by constructing a cross-country database spanning up to 211 years...

Journal of Financial Stability, Volume 23, Pages 79-91.

Does low volatility in financial markets mean that another financial crisis is more likely? And should we be worried when everything is OK? This...

Since increasing a bank's capital requirement to improve the stability of the financial system imposes costs upon the bank, a regulator should ideally...