Avoiding misleading messages from interesting academic papers
What is it about?
Journal of Finance published a paper by Allen and Gale on "Optimal Financial Crisis". The paper is technically correct but it is misleading. Our paper shows why this is so.
Why is it important?
The financial crisis in and around 2007 in USA (and elsewhere) was disastrous. One question that arises is - what was the economics profession doing before the crisis? Well, the literature included papers like "Optimal financial crises" (Allen and Gale, 1998, J. of Finance). It is interesting that the literature now hardly considers such papers. Our paper was critical of this literature well before the crisis hit the US economy and other economies.
The following have contributed to this page: Gurbachan Singh and Dr. Gyanesh Kumar Tiwari
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