Hengjie Ai
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Investment and CEO compensation under limited commitment
, with
Rui Li
,
, Journal of Financial Economics, 2015, vol. 116, issue 3, 452-472.
A theory of dynamic contracting with limited commitment and investment.
A tractable model of limited enforcement and the life-cycle of firms
, with
Rui Li
,
, with Rui Li,
Economic Letters
,
Volume 163
, February 2018, Pages 136-140.
Closed-form solution for a dynamic contracting model with limited commitment.
Online appendix
A unified model of firm dynamics with limited commitment and assortative matching
, with
Dana Kiku
and
Rui Li
, and
Jincheng Tong
Journal of Finance, Volume76, Issue1, February 2021, Pages 317-356.
A unified model of limited commitment and assortative matching that generate power laws in firm size and CEO pay.
Technical appendix
Details of the numerical solution with Markov chain approximation
Asset pricing with endogenously uninsurable tail risks
, with
Anmol Bhandari
, Econometrica, 2021, Volume 89, Issue 3, 1471-1505.
Dynamic-agency based asset pricing. We show that limited commitment generates endogenously uninsurable tail risks. In general equilibrium, the uninsured tail risks amplify risk prices under recursive preferences.
Slides
Details of the numerical solution
A quantitative model of dynamic moral hazard, with
Dana Kiku
and
Rui Li
, forthcoming, Review of Financial Studies.
Moral hazard accounts for the stylized facts on the cross-sectional and time-series properties of CEO and firm investment.
Moral hazard and investment-cash flow sensitivity
, with
Kai Li
and
Rui Li
Dynamic moral hazard accounts for the failure of Q-theory and the pattern of investment-cash flow sensitivity regressions.
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