Jeremy C. Stein

TL;DR: The authors developed a two-factor model of the term-structure which implies that a linear combination of any two rates can be used as a proxy for the central tendency, based on which they estimate the one-month rate which performs better than models which assume the central tendency to be constant.

TL;DR: In this paper, the authors model a market populated by two groups of boundedly rational agents: "newswatchers" and "momentum traders" and provide a unified account of under- and overreactions.

TL;DR: In this paper, the authors examine some of the forces that can lead to herd behavior in investment and discuss applications of the model to corporate investment, the stock market, and decision making within firms.

TL;DR: In this paper, the authors develop a general framework for analyzing corporate risk management policies and argue that if external sources of finance are more costly to corporations than internally generated funds, there will typically be a benefit to hedging: hedging adds value to the extent that it helps ensure that a corporation has sufficient internal funds available to take advantage of attractive investment opportunities.

TL;DR: In this paper, a general framework for analyzing corporate risk management policies is developed, and the authors argue that if external sources of finance are more costly to corporations than internally generated funds, there will typically be a benefit to hedging: hedging adds value to the extent that it helps ensure that a corporation has sufficient internal funds available to take advantage of attractive investment opportunities.