In this paper, we identify and quantify the importance of endogenous peer effects in the interbank market, allowing for varying degrees of intensity of these peer effects. We base our analysis on a unique dataset that ...

This paper considers identification and inference about the sign of the average effect of a binary endogenous regressor (or treatment) on a binary outcome of interest when a binary instrument is available. In this setting, ...

We show that when investors suffer from endogenous asymmetric money illusion, the usual proportionality between money supply and nominal prices commonly present in frictionless economies is eliminated. This drives changes ...