Research

Household Finance:

  1. Blood Money: The Financial Implications of Plasma Sales for Individuals and Non-Bank Lenders

with Emily Gallagher

In the United States, households donate plasma for compensation at a higher rate than they use payday, auto-title, rent-to-own, or pawn loans. Our paper is the first to explore the financial implications for households of plasma donation. Plasma donors tend to be younger and less educated with lower incomes and credit scores; they are also more reliant on non-bank credit. We use dramatic growth in plasma centers between 2014 and 2021 to study the causal effect of the ability to donate plasma on non-bank credit. We find that access to a plasma donation center reduces demand (inquiries) for payday and installment loans by 6.5% and 8.1%, respectively, with larger effects (13.1% and 15.7%, respectively) on younger borrowers. Moreover, foot traffic increases by 7-10% at essential and non-essential goods establishments when a new plasma center opens nearby. Our findings suggest that plasma donation helps households smooth consumption without appealing to high-cost debt.

Banking:

  1. Capital and resolution policies: The US interbank market

with Agostino Capponi, Mikhail Oet, Stephen Ong

Journal of Financial Stability, 2017, 30, 229-239

  1. The Financial Stress Index: Identification of Systemic Risk Conditions

with Mikhail Oet, Stephen Ong

Risks, 2015, 3 (3), 420-444

  1. Supervising System Stress in Multiple Markets

with Dieter Gramlich, Amanda Janosko, Mikhail Oet, Stephen Ong

Risks, 2015, 3 (3), 365-389

Work in Progress:

  1. Human Collateral: Plasma Sales and Bank Credit

with Emily Gallagher and Daniel Hartley

  1. Coping with Payday Loan Restrictions: The Role of Discretionary Income

  2. What You Know or Whom You Know: The Effect of Bankers on Syndicated Loans