US banks would lose $700bn in economic crash, Fed stress tests find
Several Wall Street lenders boost investor payouts after receiving pass grades
FEDS Paper: Sequence-Space Jacobians of Life-Cycle Models
Bence Bardóczy, Akshay Shanker, and Mateo Velásquez-GiraldoThe sequence-space Jacobian (SSJ) method of Auclert et al. (2021a) has made heterogeneous-agent models far easier to solve, fueling an explosion of applications. But even SSJ strains against capacity constraints when state spaces grow very large, as in economies with overlapping generations of heterogeneous agents (HA-OLG).
Predictions market Kalshi in talks to raise funds at $40bn valuation
Rapidly growing company is increasingly challenging established derivatives and betting rivals
Trump scraps signing of US housing affordability bill
Bipartisan legislation is designed to boost supply and curb institutional investors’ role in property market
Prosus leads €480mn investment in French health tech start-up Alan
The deal values 10-year-old Paris-based group at €5.5bn
Credible deterrence requires a new Nato bank
Capital rules prevent the defence ecosystem from getting financing at the volume it needs from commercial lenders
UK banks defeat watchdog in legal battle over historic loan complaints
High Court rules that Financial Ombudsman Service unlawfully allowed consumers to challenge terms beyond 6-year limit
FEDS Paper: An Evaluation of Difference-in-Differences Methods Using Placebo Event Studies
John Coglianese and Jade A. FangResearchers are faced with the choice of which of the many recently developed difference-in-differences methods to use in practice. To assess these estimators' relative performance for single-unit event studies, we conduct 134,000+ state-level placebo event studies across 13 estimators. We find that no single method dominates.
Businesses often row back on ethics when times get tough. Here’s how technology can keep them on track
Five carmakers are involved in a case at the High Court in London over claims that they cheated on emissions tests. A decade ago, the “dieselgate” scandal broke, eventually forcing Volkswagen to pay billions of euros in fines and settlements. These carmakers (Mercedes, Ford, Peugeot/Citroën, Renault and Nissan) have all faced accusations that selling cars was more important to them than their environmental responsibilities. They all deny the allegations.
As Chinese Tech Pulls Ahead, U.S. Fears It Will Become Dependent
Chinese firms have some of the world’s most advanced technology. But U.S. officials say relying on it could come with a downside.
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