Research

Using Medicaid expansion under the ACA as an instrumental variable, this paper shows that higher uninsured rates increase loan default probabilities and interest rates in P2P lending, yet health-related default risk is only partially priced, implying government health policy has significant spillover effects on household financial resilience.

In P2P lending markets, health-related financial risk affects loan outcomes through quantities rather than prices—investors diversify positions and slow funding rather than raising rates. Platform architecture drives this separation. Algorithmic centralization compresses this channel, suggesting fintech's efficiency gains may systematically exclude non-contractualizable risks from credit allocation decisions.

Using state-level medical malpractice tort reforms as exogenous variation, this paper demonstrates that reductions in employer healthcare costs significantly increase both the quantity and quality of firm innovation among U.S. public firms from 1999–2016, identifying healthcare cost relief as a novel institutional channel shaping corporate innovative activity economy-wide.

Post-crisis stress tests cause affected banks to reallocate credit away from riskier markets, raising interest rates where they have local branch presence and exiting where they do not. Aggregate credit remains stable as online lenders expand into geographies previously dependent on stress-tested banks.